While the week is strongly bullish for Cardano, the price of ADA marks an impressive increase of 10.79% and announces a rise beyond $0.70. Additionally, the daily chart has a potential rounded bottom that increases the likelihood of buyers extending the uptrend.
With sentiments improving around the New Year’s rally and altcoin season knocking on the door, Cardano is signaling a solid trend reversal. Therefore, with the growing possibility of a breakout of $0.70, Cardano price prediction maintains an optimistic view.
Weekly ADA Price Chart Activates Bullish Mode
Source – Commercial view
In the weekly chart, ADA price shows an increasing number of bullish candles and represents 163% in 12 weeks. After rebounding from the crucial support at $0.25, Cardano price is approaching the 38.20% Fibonacci retracement level at $0.70.
With the recent breakout of the $0.60 supply zone and a retest with the Doji candle, the altcoin is in the post-retest phase. Additionally, the weekly bullish candle in the making undermines the higher price rejection over the past two candles.
Source: Commercial view
Moreover, in the daily chart, the increasing bullish momentum hints at a rounding reversal with a neckline at $0.687. The neckline coincides with the trend-based Fibonacci level of 38.20% and signals a breakout trend.
Currently trading at $0.648, ADA price shows intraday growth of 2.21% while taking neckline resistance. However, the daily candle shows higher price rejection and warns of bullish failure.
If Cardano’s uptrend continues and ADA price rises above the $0.70 mark, then a rally to $1 is possible. However, a fall below $0.60 is possible if the reversal trend accelerates after being rejected from the $0.70 mark.
EMA: The 50 and 200 EMA in the weekly chart mark a positive turnaround with the continued recovery of ADA price. This increases the possibility of a golden cross, which would certify a trend reversal within a longer time frame.
MACD: Daily MACD and signal lines are preparing for a bullish crossover with Cardano’s recent rebound. Additionally, the declining phase of the negative histograms supports the possibility of a crossover of the MACD indicator. In case of a crossover, the MACD indicator will support the possibility of trend reversal.