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Cardano (ADA) Price on-Track for Ninth Consecutive Bullish Week – Will It Hit $1?

source-logo  beincrypto.com 15 December 2023 14:38, UTC

The Cardano (ADA) price has increased swiftly since October, reaching a new yearly high on December 13.

Even though the price does not trade close to a horizontal resistance area, short-term time frames show weakness. Can ADA close another bullish week?

Cardano Increase Leads to New Yearly High

ADA’s weekly technical analysis reveals a significant upward movement since October. ADA is on track to achieve its ninth consecutive bullish weekly candlestick.

On December 13, ADA hit a new yearly high of $0.68, marking its highest value since May 2022.

This upward movement also includes a breakout above a long-standing horizontal resistance area that had persisted for 430 days.

ADA/USD Weekly Chart. Source: TradingView

Traders commonly rely on the Relative Strength Index (RSI) as a momentum indicator to identify potential overbought or oversold conditions, aiding in decision-making regarding asset accumulation or selling.

An RSI above 50 and an upward trend signal an advantage for bulls, while readings below 50 suggest the opposite.

In the case of ADA, the weekly RSI is on the rise and sits above 50, indicating favorable conditions. Moreover, it has entered into overbought territory (green icon).

Notably, the previous instance of RSI entering the overbought zone (green vertical trend line) preceded a significant upward movement that ultimately led to ADA reaching its all-time high.

Cardano (ADA) Price Prediction – Is $1 Attainable?

Technical analysts utilize the Elliott Wave theory to ascertain the trend’s direction by studying recurring long-term price patterns and investor psychology.

The most likely wave count suggests that the ADA price has reached the top of wave three in a five-wave upward movement (black). The sub-wave count is in white, meaning that wave three has extended.

SatoshiTalks suggested that the price increase could have occurred as a result of the increase in Total Value Locked (TVL). He tweeted:

#Cardano‘s #DeFi ecosystem has witnessed a significant upswing, approaching a TVL of $450M This comes as #Crypto investors and users seek to find alternatives to #Ethereum

This on-chain growth has positively impacted the price of $ADA, leading to an 80% surge

A local top may be in since wave three has 2.61 times the length of wave one. The completed sub-wave formation also supports this possibility.

So, if the count is correct, ADA will complete the corrective wave four at the 0.382 Fib retracement support level at $0.50, a decrease of 20% from the current price.

ADA/USDT Daily Chart. Source: TradingView

Despite this bearish ADA price prediction, a movement above the 2.61 extension at $0.70 will mean that wave three will extend further. The ADA price can increase by another 40% and reach the next resistance at $0.88 in that case.

How to Stake Cardano – A Complete Guide for Beginners. Source: YouTube

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