- Cardano price has produced positive returns five days in a row.
- ADA could rally towards $0.40 for a 21% increase.
- The uptrend's health depends on the $0.28 support level remaining untagged.
Cardano price has displayed continued market strength in recent days. The uptrend could be the start of a much larger move north in the coming weeks.
Cardano price has been consistently increasing
Cardano price continues to be the topic of discussion amongst crypto traders as the digital smart contract token has rallied impressively since the start of 2023. As of January 12, the ADA price has returned 35% of lost value to investors. The ongoing relief rally provokes an eerie feeling that the ADA token may have bottomed out on a macro level.
Cardano price currently auctions at $0.3287 as the digital asset has produced five consecutive green days in a row. The slope of the trend has gone nearly vertical, enabling bulls to grab the liquidity above December's monthly high at $0.3290.
The Relative Strength Index, an indicator that can be used to qualify the potential of trending markets, shows promising signals amidst the recent surge. According to the indicator, ADA is now in the overbought territory, which signals genuine interest from swing trading bulls. The volume indicator dually compounds the bullish notion as market transactions nearly doubled to $400,000, compared to the average $200,000 worth of transactions witnessed throughout the winter.
The market is likely to face a pullback at some point. Thus traders should continue to watch the RSI for a landing zone at the midpoint and an influx of volume relative to any red days moving forward. Bullish targets would be the liquidity above $0.3700 and the psychological $0.4000 price point, up to a 21% upswing from Cardano's current market value.
ADA/USD 1-day chart
The earliest evidence to suggest a trend change would be a breach below the newly established ascending trendline. At the time of writing, the crucial level is priced at $0.2800 but is subject to move higher if the Cardano price remains elevated and adjacent to the trend. A breach of the trend could create a retest-the-lows scenario, ultimately challenging the 2022 bottom at $0.2440. The ADA price would decline by 27% under the bearish scenario.
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