- Cardano price rises for the third consecutive day, crossing a key resistance-confluence to hit a two-week-high.
- ADA reverses early August’s bearish breakdown, backed by upbeat momentum indicators.
- Falling Wedge confirmation on 4H adds strength to the upside bias.
- Four-month ascending trend-line lures Cardano bulls, 200-day SMA offers strong downside support.
- ADA appears to be set for further advances, building on its monthly and yearly gains.
Cardano (ADA) price jumps to the highest level in a fortnight, up 2.60% intraday to $0.8885 early Tuesday, up for the third consecutive day while piercing a key technical resistance.
ADA reverses the late August bearish breakdown of a three-month bullish channel, while also crossing a three-week descending trendline resistance, to underpin the latest upside.
Further, bullish signals from the 14-day Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) momentum indicators also suggest the continuation of the recent recovery.
Meanwhile, a two-week high in the altcoin’s trading volume and market capitalization also validates its further upside moves. That said, Cardano’s daily trading volume rises for the fourth consecutive day to $1.7 billion, whereas the market cap jumps to $31.76 billion, both hitting fortnight highs, according to data from Santiment.
With this, Cardano appears poised for reversing late August losses and add to the yearly gains.
Cardano Price: Daily Chart Defends Bulls
Cardano’s gradual recovery from a month’s low gains support from the above 50.00 RSI line and the bullish MACD signals, boosting the latest breakout of a $0.8770 resistance confluence, comprising a multi-month channel’s floor and a three-week falling trend line.
This approves the ADA’s further upside toward an ascending resistance line from early May, close to $0.9850.
Beyond that, the $1.0000 psychological magnet and the early-March swing high near $1.0275 could test the bulls before directing them toward the yearly high hit in March around $1.1750.
Conversely, ADA’s failure to provide a daily closing beyond $0.8770 resistance confluence could trigger a profit-booking wave to drag prices toward the monthly low of $0.7820, with the $0.8000 threshold likely acting as an intermediate halt.
Still, the 100-day and 200-day Simple Moving Averages (SMAs), respectively near $0.7410 and $0.7285, offer strong downside support to restrict Cardano’s downside, a break of which could make it vulnerable to revisit the $0.5110 horizontal support, including the yearly low.
Cardano Price: Four-Hour Chart Highlights Bullish Breakouts
On the four-hour chart, Cardano has already confirmed a three-week “Falling Wedge” bullish pattern, and has crossed the 200-bar SMA. The breakouts also take support from the bullish MACD signals to keep buyers hopeful.
However, the overbought conditions of the RSI line, above 70.00, suggest a consolidation in the ADA price before the next rally.
This highlights the nearby Fibonacci Extension (FE) levels of Cardano’s June-August moves as short-term hurdles. Among them, the 50% and 61.8% FE levels, respectively near $0.9235 and $0.9915, can guard immediate ADA upside ahead of the 78.6% FE level of $1.0965 and the daily chart’s higher levels.
Alternatively, the 200-bar SMA and the stated wedge’s top, close to $0.8555 and $0.8120, could restrict short-term ADA pullback before the $0.8000 and $0.7000 round figures, as well as the two-month horizontal support area near $0.6870-$0.6840.
Below that, the deeper levels discussed on the daily chart will be on the bear’s radar.
Conclusion
Cardano’s recovery finds fuel from the technical breakouts and upbeat momentum indicators, boosting short-term upside hopes. However, a slew of upside hurdles stand tall to offer intermediate pauses during the ADA rally to extend monthly and yearly gains.
Also read: Cryptocurrency Weekly Price Prediction: BTC, XRP Rebound, But ETH Lags, amid Fed Rate Cut Buzz
