Cardano (ADA) has broken the short-term descending resistance line and will confirm a bullish reversal with a break above the long-term resistance line.
ADA has moved down along with a descending resistance line since it hit an all-time high of $ 3.1 on September 2nd.
Then an upward move began, recapturing the $ 1.45 area that had previously acted as resistance.
Technical indicators are increasing.
The MACD, formed by the short and long term moving averages (MA), is sloping up and is about to break into the positive zone. This means that the short term MA is faster than the long term MA and is a sign of an uptrend.
The RSI, a momentum indicator, has the line of 50. Movements above this line are also seen as signs of an uptrend.
However, until ADA breaks the descending resistance line, the trend cannot be considered bullish.
If there is a breakout, the next resistance is at $ 1.95.
Daily Cardano/ USDT Chart | Source: TradingView
Short term movement
The six-hour chart shows that ADA has broken above a descending resistance line that has been in place since November.
The $ 1.95 zone consolidates strength over this timeframe as it is also the 0.618 fib retracement resistance of the recent decline in addition to the horizontal resistance.
Hence, a breakout above it would be a big bullish development.
ADA / USDT 6-hour chart | Source: TradingView
Trader @TheTradingHubb has outlined an ADA chart indicating that the token has completed its correction and is now going to rise again.
The source: Twitter
Both parts of the downward movement (highlighted) have a ratio of 1: 1, so they are of the same length. Therefore, it is more likely that the customization will complete.
The first potential resistance is at $ 1.94, the 0.382 Fibonacci retracement resistance (white). However, it is more likely that ADA will rebound towards the 0.5 or 0.618 Fib retracement resistance levels. They are $ 2.16 and $ 2.38.
Daily ADA / USDT Chart | Source: TradingView
You can see the ADA prices here.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.