Cardano’s (ADA) token is back to testing the descending trendline that has been at a tough resistance level since March 14. This move comes after a bounce off the weekly low of $0.32 and holds above the $0.395 level, suggesting further bullish momentum.
ADA trades at $0.395 at press time, marking a 2.46% increase in the last 24 hours, making it the top gainer among the top 10 cryptocurrencies. This market optimism has increased its intraday market cap to $14.191 billion, placing it in the 10th spot in the crypto rankings. However, its 24-hour trading volume shows a 13.86% increase to $294.95 million.
ADA Shows Potential for Surge
According to TradingView’s data, the ADA token is currently testing its 4-month trendline. If the token breaks this level, it could signal a bullish breakout, maintaining its price above $0.40. Market experts predict that this positive action could increase ADA prices by 22%, potentially surpassing June’s high of $0.49.
Advertisement
Essentially, the RSI index supports this outlook. Based on the above analysis, the RSI forms higher lows and higher highs, indicating a bullish trend. Positioned at 53.11, the RSI further suggests that ADA is not overbought, leaving room for further price appreciation and supporting a breakout above $0.49.
However, should the 4-month trendline hold, ADA prices could decline, possibly retesting the immediate low of $0.33 for support. If this level fails, prices may further drop below $0.30, indicating a short-term bearish trend.
Can Cardano’s ADA Hit $3 Again?
Historical trends indicate a possible reversal as Cardano prepares for the Chang Hard Fork expected to happen this month. This much-anticipated upgrade, which was initially set to roll out in Q2 2024, is expected to have many positive impacts on Cardano, leading to speculations of a potential price spike.
Consequently, enthusiasts compare the Chang hard fork to the 2021 Alonzo, which introduced smart contracts and catapulted ADA’s price from $1.35 to an all-time high of $3.10, a 130% increase. Many anticipate that the Chang Hard Fork could trigger a similar market reaction.
Advertisement
Also Read: Donald Trump Confirms Speaking at Bitcoin 2024 Conference
