Cardano (ADA) has regained momentum, currently trading at $0.67, and has seen a notable increase of 4.8% over the last 24 hours. The trading volume has surged beyond $1.1 billion, suggesting a robust resurgence in market interest.
Technical analyst Charting Guy has recently revealed an ambitious outlook for ADA, proposing a potential rise to $6.25 this cycle, contingent upon the continuation of its multi-year rising channel that has defined its price movement since 2018-2019.
This upward trend, anchored in a long-term multi-year channel, includes significant levels of support and resistance that traders actively monitor. The crucial resistance threshold is positioned at $1.15694, which aligns with the 0.618 Fibonacci retracement level. For ADA to ascend to higher price targets, it is imperative that this level is converted into support on weekly closes.
Conversely, the pivotal support level is identified at $0.62932, specifically at the 0.382 Fibonacci mark. A decisive close below this level could alter the bullish narrative, jeopardizing its current structure.
Charting Guy’s analysis illustrates that since its base period in 2018-2019, ADA has adhered to a well-defined channel with lower and upper parallels. Current Fibonacci extension targets suggest a sustained bullish outlook, with a theoretical high of $6.25 corresponding to the 1.272 Fibonacci extension.
Moreover, ADA has recently broken past its descending trendline, as highlighted by trader Sssebi, establishing a potential shift in market sentiment. A discernible inverse head and shoulders pattern has formed, with a neckline near $0.66 confirming the bullish reversal.
Charting Guy has asserted that ADA remains on solid ground as long as the uptrend persists, with higher highs and higher lows being established since late 2023. The ongoing bullish formation is characterized by increased trading activity and supportive technical indicators, including an RSI trending above 60, signaling healthy market momentum.
Despite these positive signals, it’s crucial for investors to remain vigilant. The 0.618 resistance must be cleared to unlock further upside. The potential for pullbacks exists, especially if ADA fails to maintain the critical support at $0.62932 on a weekly closing basis. Previous support levels have historically rallied along key Fibonacci areas, notably around $0.43180 and $0.33360.
Looking ahead, a breakout above $1.15694 could pave the way for further ascension up to $1.44, $1.78, and $2.32. Each significant retracement level will act as a potential pivot point, with escalating targets leading towards the final extension level of $6.25325.
Currently, ADA’s market cap hovers around $25 billion, securing its position among the top 15 cryptocurrencies by market capitalization. The prevailing technical structure remains intact, setting the stage for an exciting period ahead for Cardano holders and traders alike.
