Cardano – Why ADA’s rally to $1.20 may be just beginning
So long as Cardano prices stay above the $0.755 level, the short-term bias would remain bullish, and the altcoin can rally over the weekend.
Key Takeaways
Bitcoin and Ethereum saw strong gains from the 5th of August. Cardano has followed in their footsteps, and clues from its price chart showed bulls have reason to remain hopeful.
Cardano [ADA] saw a 4.88% price gain over the past 24 hours.
The altcoin’s daily trading volume had also increased by a whopping 74%. Bitcoin [BTC] was trying to climb past the $117.5K resistance, but has been unable to do so at press time.
Will Cardano continue its rally regardless of BTC’s stalled momentum?
Using the swing points from late June and July at $0.51 and $0.937, a set of Fibonacci retracement levels was plotted. It showed the 61.8% retracement level was at $0.673, and this level was nearly retested as support during the recent retracement.
The June high at $0.73, a resistance two months ago, has been reclaimed as support. Highlighted in cyan, this area also had confluence from the moving averages on the daily chart.
It was encouraging that Cardano saw a bullish reaction from this area. Additionally, the CMF was at +0.06, reflecting significant buying pressure. The MACD remained above the zero line and was on the verge of forming a bullish crossover again.
The technical indicators and the price action on the 1-day chart reflected bullishness. A rally was likely to follow.
The Fibonacci extension levels at $1.03 and $1.2 were the next targets. These levels lined up relatively well with strong horizontal levels from November to December 2024.
On the 2-hour timeframe, Cardano was at the $0.78 level, which had served as resistance during the retracement toward the end of July. The ADA bulls appeared to have flipped this level to support.
The MFI and the CMF supported this idea that Cardano was strongly bullish in the short-term.
Hence, it was likely that Cardano offered a good buying opportunity now. It would maintain its bullish short-term outlook so long as it stayed above the $0.755 level.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
