Famous analysts have predicted that Cardano’s price could reach $0.42 USD this week. Currently, there are no signs of a price decrease.
After months of consolidation, Cardano (ADA) has broken free from its tight range, showing an upward trend on major timeframes. Currently, there are no apparent signs of weakness, though a correction is always a possibility. This ongoing scenario has sparked a discussion among investors and analysts regarding whether ADA’s price can reach $0.42 USD this week.
SIGNS INDICATE CARDANO COULD CONTINUE TO RISE
Last month, we witnessed a market recovery, during which ADA surged past the $0.24 USD support level, reaching a significant resistance trendline, as noted by technical analyst and DecenTrader founder Filbfilb. Indeed, this week’s continued upward momentum has propelled Cardano to $0.33 USD.
Although this level has become a resistance, ADA’s price still shows strong upward momentum on the weekly timeframe. This sets the stage for a potential challenge of new highs this week. The next resistance level, originating from the February peak at $0.42 USD, awaits testing.
However, a price retracement from the current trading level could signal a short-term correction before the upward trend continues. Indeed, a more extensive pullback may serve as confirmation of the recent breakout. If $0.33 USD extends its support, a strong recovery is likely to follow.
While there are no negative signals, the upward trend may continue until Cardano encounters more significant resistance. It’s noteworthy that ADA has gained 33% over the past three weeks. While the $0.33 USD resistance is in focus, higher resistance levels at $0.35 USD and $0.38 USD are crucial points to watch for a breakthrough.
As Filbfilb asserts that more people are betting at current price levels, increasing buying pressure could pave the way for ADA’s price prediction to reach $0.42 USD. As investor sentiment shifts towards a bullish trend, Open Interest (OI) has been on the rise over the past week despite significant price volatility. The price’s upward trajectory and rising OI signal investors’ optimistic outlook.
On the other hand, if a price correction occurs, the nearest support level for the recovery phase is at $0.30 USD. If this support level fails, lower levels to watch include $0.27 USD and $0.24 USD, with the latter serving as the last line of defense for the bulls.
ADA AMONG THE MOST BENEFICIAL ALTCOINS
Technical analyst and on-chain analyst Ali Martinez also maintains an optimistic view of Cardano. He believes that ADA’s current price trend could be repeating the 2018-2020 phase. However, Martinez points out that the most crucial resistance point is $0.47 USD, which could trigger a price surge if breached.
Martinez states:
If history repeats itself, ADA may be in this consolidation phase ranging from $0.24 USD to $0.46 USD until July 2024. However, unless unforeseen events like the COVID-19 crisis occur, ADA could erupt right after December 2023.
According to on-chain analysis firm Santiment, the surge in prices of altcoins like Cardano may come from investors taking profits from Bitcoin and moving into large and mid-cap assets. The company claims that altcoins have not fully recovered their previous losses, indicating the potential for higher profits in the future.