Since October, Cardano has formed six bullish weekly candles in a row. The price has broken through short-term horizontal resistance, but there is still a long-term barrier ahead
Cardano struggles with range highs
Weekly timeframe shows ADA skyrocketing since October 16th ( green icon ). Since then, the price has formed six consecutive bullish weekly candles.
The rally culminated in a high of $0.41 reached two weeks ago, but the price has not broken out of the long-term range it has been in for more than a year. Instead, it formed a long upper wick ( red icon ) and dropped slightly.
Meanwhile, the relative strength index (RSI) is rising and is above the neutral level of 50, which is considered a sign of a bullish trend.
Weekly chart ADA/USD. Source: TradingView
What traders say
Crypto traders and analysts on the X platform are divided on Cardano's prospects.
Thus, RLinda believes that the price has completed the correction phase due to a bullish breakout of the long-term resistance line.
ADA/USDT daily chart. Source: X
Meanwhile, CryptoBusy suggested that a breakout of the current long-term resistance level could significantly accelerate the rate of price growth. He declared:
“This price level has been alternately playing the role of support and resistance for more than 2000 days. And this is one of the technical reasons why the price of $ADA is not rising right now. If the price breaks through this resistance, we will see a powerful upward move!”
BigChonis also notes the importance of this resistance zone, but does not believe Cardano will break through it.
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ADA Forecast: Will Growth Continue?
While the weekly chart is showing mixed signals, the RSI and price action on the daily timeframe indicate that ADA will continue to rise.
The token has already recovered above the horizontal resistance area of $0.35.
Following this, the daily RSI formed a latent bullish divergence ( green ), which often indicates trend continuation. If the divergence is confirmed, the price will rise 17% to the next resistance at $0.45.
Source: TradingView
This bullish forecast will be invalidated if Cardano closes below the $0.35 horizontal area. In this case, the price could fall by 23% to the next support at $0.30.