Cardano [ADA] has shown significant bullish momentum on both daily and weekly charts. With a 38% surge over the last week and a remarkable 146.7% increase since early November, the altcoin continues to impress.
While Bitcoin [BTC] also experienced a 5% upswing over the same period, experts suggest a possible minor correction towards $90k in the upcoming weekend, potentially creating a favorable entry point for Cardano investors.
Looking ahead, the outlook remains notably positive for Cardano and Bitcoin in the long run.
Predicting Cardano’s Price Movements
Recent analysis indicates that Cardano reached a new high for 2024 last week, setting the stage for further upward movement in the foreseeable future.
Although facing resistance around the $0.6 mark initially, Cardano managed to break through after a brief setback on November 11th, subsequently reaching $0.819.
The weekly RSI stands at 79.25, highlighting strong buying pressure. While a bearish divergence was observed on the daily chart, no such signal was apparent on the weekly timeframe.
Despite the battle to maintain $0.787 as a support level, a potential dip to $0.705 could be in the cards. Notably, the OBV indicator reflects a sharp uptrend in November, signaling growing demand for Cardano.
Factors Contributing to ADA’s Potential Decline
Analysis of the 30-day liquidation map reveals a cluster of long liquidation levels between $0.741 and $0.781. A price drop within this range could trigger further liquidations, potentially pushing the price down to $0.726.
This scenario is reinforced by the bearish RSI divergence and the current price residing below the critical resistance level at $0.787. However, such a correction may offer a new buying opportunity and contribute to a healthy market dynamic in the near future.
Disclaimer: The opinions expressed in this article are personal views and do not constitute financial advice. It is advisable to conduct thorough research before making investment decisions.