Cardano (ADA) has recently demonstrated significant upward momentum, signaling a potentially strong bullish phase. Following gains seen in Bitcoin and Ethereum, ADA's price action and key technical indicators suggest a promising outlook for the altcoin.
ADA's Resilient Price Action
Cardano has exhibited impressive recovery, marked by a 4.88% price surge and a substantial 74% increase in daily trading volume. This upward movement is underpinned by critical technical levels now acting as robust support. Notably, the 61.8% Fibonacci retracement level at $0.673 recently served as a strong support point, preventing further declines. Furthermore, the June high of $0.73, once a resistance, has been decisively reclaimed as support, reinforced by converging moving averages on the daily chart.
Bullish Indicators and Price Targets
The positive price action is strongly corroborated by various technical indicators, painting a clear bullish picture for Cardano. The Chaikin Money Flow (CMF) stands at a healthy +0.06, indicating significant buying pressure, while the Moving Average Convergence Divergence (MACD) remains above the zero line and is poised for another bullish crossover. On the shorter 2-hour timeframe, ADA has successfully flipped the $0.78 resistance level into support, an observation further supported by the Money Flow Index (MFI) and CMF. This confluence of bullish signals suggests that a rally is highly probable, with potential targets identified at Fibonacci extension levels of $1.03 and $1.20, which align with significant historical resistance zones. As long as ADA maintains its position above the $0.755 level, its short-term bullish outlook is expected to persist.
