- Cardano price is testing its descending trendline, a breakout above it signals a potentially bullish move ahead.
- Technical analysis shows that ADA has formed a bullish divergence on a momentum indicator.
- A daily candlestick close below $0.317 would invalidate the bullish thesis.
Cardano's (ADA) price is revisiting its descending trendline, and a breakout above it signals a bullish move. ADA is supported by a bullish divergence observed in both the Relative Strength Index (RSI) and the Awesome Oscillator (AO), suggesting potential momentum for an upward rally.
Cardano price shows potential for a rally
Cardano price is retesting its descending trendline, which is drawn from joining multiple swing high levels from late March to early July.
If ADA breaks above the descending trendline, it could rise 10% to retest its daily resistance level of $0.426.
Additionally, the formation of a lower low in the daily chart on July 5 contrasts with the Relative Strength Index's (RSI) higher high during the same period. This development is termed a bullish divergence and often leads to the reversal of the trend or a short-term rally.
Moreover, if ADA closes above $0.426, it could extend the rally by an additional 31% to revisit its 50% price retracement between $0.318 and $0.810 at $0.564.
ADA/USDT daily chart
However, if ADA’s daily candlestick closes below $0.317 and establishes a lower low on the daily timeframe, it may signal a shift in market dynamics that favors bearish sentiment. Such a change could invalidate the bullish outlook, leading to a 10% crash in the Cardano price to the previous low of $0.283 on November 1, 2023.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Jupiter: eyes $0.82 as Fluid backs Jupiter's upcoming lending protocol
Jupiter (JUP) is getting the spotlight in the crypto market after months of being under the radar, recording a spike of 16% in the last 24 hours. The revival comes with increasing decentralized finance (DeFi) activities and the announcement of Jupiter Lend.
Avalanche Forecast: Eyes $30 as FIFA, VanEck back blockchain ecosystem
Avalanche (AVAX) is gaining bullish momentum, extending gains on Friday, trading at $25.74 as investor confidence grows on the back of two major developments. FIFA, football’s global governing body, has announced plans to build its own Layer-1 blockchain on the Avalanche network.
Top 3 Price Prediction: Bitcoin, Ethereum, Ripple – Bulls set sights on $120K BTC, $3K ETH, and $3 XRP
Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) continue to show signs of strength heading into the weekend, with bullish sentiment lifting prices. BTC is holding steady above $111,000 as traders eye the long-awaited $120,000 milestone.
Top Gainers WLD HYPE ZEC: Privacy coins lead the altcoins rally
The wider crypto market witnesses the altcoins rally gaining traction with the total crypto market cap, excluding Bitcoin and Ethereum crossing $935 billion. Privacy coins such as Worldcoin (WLD) and Zcash (ZEC) lead the rally as investor demand grows to bypass government scrutiny alongside hackers returning to the bull market.
Bitcoin: BTC stabilizes near $103,000 amid trade optimism, rising institutional demand
Bitcoin (BTC) price stabilizes at around $103,000 when writing on Friday, after facing multiple rejections at the key $105,000 resistance level throughout the week.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.