Cardano (ADA) price is reaching higher levels after falling to June lows at $0.23. In the early hours of this Friday (15), ADA rose 2.5% and reached US$0.2527. The cryptocurrency lost strength, but still remained in positive territory.
The widespread optimistic outlook comes despite the US Consumer Price Index (CPI), which still suggests persistent inflation. In this sense, ADA could soar 25% and achieve momentum for new appreciation, as long as it manages to overcome the US$0.26 barrier.
Cardano (ADA) Analysis
Following the recovery from support at $0.23, which coincided with the mid-boundary of a falling channel, buyers are scrambling to weaken ADA’s resistance. The first resistance level in the cryptocurrency’s price is the $0.26 region, according to the chart.
The optimistic outlook of the Moving Average Convergence Divergence (MACD) indicator reveals a new chapter for ADA price. If market sentiment continues to improve, a rally to $1 will be the most likely outcome. But for this to happen, there is still a long way to go.
Traders are likely gaining confidence in the new uptrend as the MACD line (blue) crosses above the signal line while the momentum indicator generally moves to close the gap from the midline.
Those seeking exposure to long positions on Cardano should wait until resistance in the descending channel weakens. This avoids sudden bullish traps while ensuring that the breakout allows for profit booking from $0.26.
Due to the lack of liquidity leading to a drop in trading volumes, this movement will not be quick. Only an appreciation accompanied by a relevant volume can lead ADA to reach US$ 1. The most likely path at this stage is to reach US$ 0.32, which corresponds to a 25% increase compared to the current price.
What can happen?
Key milestones that will likely help traders and investors make informed decisions as Cardano prices rise are the areas of resistance and support highlighted by the 50-day exponential moving average (EMA) (red) at $0.2701, the EMA 100-day EMA (blue) at $0.2891 and the 200-day EMA (purple) at $0.3202.
Notably, the near-term outlook is much stronger, with the MACD showing a strong buy signal on the four-hour chart. ADA price is also above the support provided by the 50-day EMA at $0.2506, although the 100-day EMA at $0.2544 could delay the climb to $0.26 and subsequently $0. .30.