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History suggests there could be a substantial upward move for Cardano in the coming days, as the MACD indicator flashes bullish signs on the daily chart.
Cardano has started today poorly, joining the rest of the market. After three successive days of persistent price uptrend, ADA has corrected nearly 4% on Tuesday to give back a considerable amount of the gains.
Cardano MACD Golden Cross Inches Closer
Amid the market uncertainties, the Moving Average Convergence Divergence (MACD) indicator is flashing a glimpse of optimism for Cardano. Top pundit Lark Davis identified this in his recent analysis, tipping Cardano to rally considerably.
Cardano Rallied 60% the Last Time
For context, Cardano last experienced such crossing below zero in June when the price consolidated around the $0.53 support area. A few days after the cross, the token began a 62% price surge, peaking at $0.93 on July 21.
Notably, a similar surge would take Cardano well above bearish territory. For context, Cardano trades at $0.641 at the time of writing. A 62% rally from the current level would take ADA to $1.04.
Crucial Resistance Zone Ahead
Nonetheless, for a sustained rally, Davis noted that Cardano would have to break above two crucial resistance zones. One of them is the resistance around $0.74 to $0.77, a former support that could not hold the October 10 capitulation.
Since falling below this level on October 10, ADA has struggled to reclaim it, with a move to $0.73 a week ago followed by a massive rejection. If it overcomes this resistance, the next zone lies around $0.80.
Remarkably, this aligns with a descending trendline dating back to the August 14 peak of $1.020. Cardano has failed to break above this neckline and defying it would further strengthen an upward momentum to much higher prices.
From the current market price, an increase to $0.77 and $0.77 marks a 15.4% and 20% growth, respectively. Meanwhile, Cardano would have to rally by 24.8% to reach the $0.80 resistance.