thecoinrepublic.com
Cardano (ADA) has recorded a 60% increase in the past week. The price rise has taken its trading value above the $0.7 mark.
ADA’s performance in the current cryptocurrency market has turned more bullish suggesting that investor interest in the token is on the rise with the potential to continue to rise. However, there are critical resistance levels and the market situation that can influence the further movement of Cardano price.
ADA Rally Propelled by Bullish Momentum and Market Recovery
Cardano’s weekly rally has been driven by the broader market recovery and return of investors’ confidence.
The cryptocurrency was able to increase its price from about $0.32 up to roughly $0.71 within seven days of trading. In fact ADA was trading at a high of around $0.75. This rally represents a significant advance while showing that ADA can attract buying attention during positive market conditions.
Furthermore, analyst Ali Martinez has given an indication of ADA’s current price action and potential future targets.
The next big test for Cardano, as pointed out by Martinez, is the 78.60% Fibonacci level at $0.69. This would help open the way toward getting to $0.77, though this is the short-term aim in moving towards the forecasted $1 ADA price.
In addition, crypto analyst Martinez stated that a more ambitious goal for ADA price prediction is a potential price increase to $6 by September 2025.
The $1 mark, which corresponds to the 1.27 Fibonacci extension level, can also be considered a difficult goal for ADA to achieve in the current cycle.
Nonetheless, failure to move past the 61.80% Fibonacci level at $0.548 may lead to a pullback that may lower the price to $0.50. This level acts as support and when violated can signal a possible trend reversal at the lower level.
Technical Indicators Signal Mixed Outcomes for Cardano
Cardano’s performance has also recently had positive technical backing for its hike. The 50-day and 200-day Exponential Moving Averages recently made a golden crossover to indicate potential upside continuation. Also, the simple moving average of the last 100 days is increasing which gives more weight to the next up move.
Other indicators like the Moving Average Convergence Divergence (MACD) depict a positive line of momentum, with bullish histogram signs recurring.
The 24-hour Moving Average Convergence Divergence (MACD) indicator for Cardano (ADA demonstrates a strong bullish signal which is the placing of the MACD line above the signal line. The recent histogram bars stay in the green confirming the buying pressure as ADA moves closer to $1.
However, the Relative Strength Index (RSI) shows that ADA price is nearing the overbought level. This indicates that a short-term reversal may occur in the near future if the rates of buying pressure decrease.
Cardano is still bullish according to Bull Bear Power (BBP) which is at 0.349, showing that the buying pressure is still higher. This will work in combination with ADA’s rally above $0.7 which has been boosted by rising trading volumes and bullish market fundamentals.
At the press time, Cardano (ADA) is priced at $0.72 and has risen by over 103% in the last 30 days. Currently, its market capitalization is $25 billion, and the daily trading volume is $4.45 billion, which increased by 181%.