Cardano (ADA) Breaks Out, Targeting $2.4

Cardano saw its value increasing by 8% over the previous 24 hours as bulls appear ready to attack the resistance level at $2.4.

  • Vital support levels – $2, $2.2
  • Vital resistance levels – $2.4, $3

Meanwhile, Cardano has tried to overcome the descending channel multiple times and managed to achieve that today amid considerable volume. With that, the altcoin hovers inside the range from $2 – $2.4, the levels that served as resistance and support. A significant push by bulls may see the alternative coin rising above the crucial resistance before nearing its ATH at $3.

Technical Indicators

  • Trading Volume

Cardano’s recent move comes as the crypto sees increased volume. While writing this content, the 4-hour timeframe displays three green candlesticks. That shows a massive bullish momentum after ADA recorded a breakout.

  • Relative Strength Index

The four-hour price chart shows the Relative Strength Index inside the overbought territory. With that, Cardano has a higher chance of retracing to $2.2 in the coming sessions before resuming its upside trend.

  • Moving Average Convergence Divergence

The Moving Average Convergence Divergence suggests bullishness on the daily price chart. The histogram indicates higher highs. Moreover, the Moving Averages expand upwards, translating to a bullish gesture.

Preference

For now, Cardano reflects a bullish bias in the short term. ADA appears to have the impulse to test the resistance at $2.4. However, market players should be attentive around the price level to see if Cardano has the momentum to push higher. Meanwhile, the previous two trials to overcome this resistance saw bears sending ADA back to its vital support. With that, market participants may have to be patient as far as incoming Cardano actions are concerned.

Near-Term Price Forecast

According to its prevailing price action, ADA appears on the road to retest its resistance located at $2.4. Meanwhile, the alt has the potential to push further in the coming few days. If the coin breaks the challenge, it will challenge its ATH as its price will move to levels around $3. Meanwhile, a rejection can have ADA hitting $2. However, the overall bullish sentiment in the crypto space after BTC overpowered its ATH yesterday supports Cardano’s upsurges.