The crypto market is experiencing an exciting period as Cardano's native cryptocurrency, ADA, has managed to reach a new yearly high of $0.421 on February 16. This has sparked a bullish movement in the market that inspires investors to remain confident in the crypto asset's potential. However, ADA's price has been facing a resistance at $0.410 since May 2021, leading to speculation on whether this point can be broken.

Analyses of the short-term six-hour chart suggest that ADA has been trading in an ascending parallel channel since March 10. Such channels are usually related to a corrective structure; however, the bullish outlook in the daily timeframe puts doubts over this bearish wave count. Subsequently, the next 24 hours will be crucial to indicate the future trend of Cardano's price movement.

The potential bullish breakout in ADA's price could significantly trigger a 40% bull rally. Should the breakout be successful, the asset's price can go up to the next resistance near the $0.560 level. On the other hand, a rejection of the breakout can result in a fall to $0.280 according to technical analysis. Ultimately, whether the ADA price breaks out or gets rejected at the $0.410 area largely determines its future trend.

Currently, the Relative Strength Index (RSI) is also making a positive contribution to the bullish dynamics. It broke out from its bearish divergence trendline, which suggests a potential breakout from the $0.410 resistance. Nevertheless, investor's need to remain watchful of the entire ADA movement yet to come.



Other News from Today