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- The Aroon indicator signaled a possible rise to $0.60 in the short term.
- ADA formed a descending triangle, indicating a possible stop to the lower highs.
- ADA’s price pulled back from $0.53 but the bullish bias has not been invalidated.
According to crypto analyst Ali Martinez, Cardano (ADA) could be ready to make a 32% rally to $0.68. Martinez mentioned this in a post dated February 8. The analyst gave reasons for his prediction using the trend displayed on the ADA/USDT daily chart.
Based on the chart he shared, Cardano has formed a descending triangle that could close above $0.53. He added that if the price does not drop below the said value, ADA could climb to $0.68 in the short term.
#Cardano shows signs of a descending triangle formation on its daily chart. A sustained daily close above $0.53 could lead to the start of a 32% rally, potentially pushing $ADA up to $0.68! pic.twitter.com/DoizuVPiRI— Ali (@ali_charts) February 8, 2024
The above-mentioned descending triangle implied that ADA had formed a bearish pattern characterized by a descending upper trendline and lower highs that were horizontal.
This pattern usually indicates the end of a downtrend. Therefore, Cardano’s price might have a chance of exiting the series of lower highs and possibly forming higher highs going forward.
At press time, the 4-hour ADA/USD showed that $0.53 has become a resistance zone for the cryptocurrency. The resistance here caused ADA’s price to pull back. However, this pullback could be considered an invalidation of the bullish thesis.
But that would only be the case if sellers continue to reject bulls’ attempts to push ADA higher. Should this happen, ADA’s price might drop to $0.50 which is the next support level. In a highly bullish phase, ADA might breach the $0.53 resistance and possibly hit $0.60 for a start.
Should buying pressure continue to outpace sell orders, ADA’s price might reach $0.65. The last time ADA hit that region was on December 28. In terms of the RSI, the chart below shows that the reading was 64.17.
The RSI reading here suggests that buyers were largely present in the market. Unless sellers book profits from the mild increase, ADA might not drop below $0.50. Coin Edition also looked at the Aroon indicator.
As of this writing, the Aroon Up (orange) was 100% while the Aroon Down (blue) fell to 57.14%. A position of this nature suggests that ADA had more bullish potential than a bearish one. If the Aroon Down reading continues to drop while the Aroon Up stays at 100%, then ADA might rise to $0.68 as Martinez opined.
ADA/USD 4-Hour Chart (Source: TradingView)
However, a decline in the Aroon Up might slow the bullish predictions. Should this be the case, the price of the Cardano native token might consolidate between $0.50 and $0.53 in the short term.
The post Cardano (ADA) to $0.68? Is the Price Increase Possible? appeared first on Coin Edition.