ADA price is reaching out to higher levels after dropping to June lows at $0.23. The smart contracts token, with $8.8 billion in market capitalization, is up 2.5% on Friday to $0.2527 joining in on a bullish wave that continues to keep the crypto market slightly in the green.
The widespread bullish outlook is despite the US Consumer Price Index (CPI) which suggested mid-week that inflation is still a course for concern.
ADA Price On The Cusp Of Breakout
Following the rebound from support at $0.23, which coincided with the middle boundary of a falling channel, Cardano’s price bulls are fighting to weaken resistance at the upper boundary to push for gains past $0.26.
The bullish outlook from the Moving Average Convergence Divergence (MACD) indicator unveils a new chapter for ADA price, which means if market sentiment continues to improve, a rally to $1 would be the most likely outcome.
Traders are most likely gaining confidence in the new uptrend as the blue MACD line crosses above the signal line while the momentum indicator generally moves to close the gap to the mean line.
Those seeking exposure to new long positions in ADA may want to wait until resistance at the descending channel has been weakened. This is to avoid sudden bull traps while ensuring the breakout allows for profit booking starting at $0.26.
Due to the lack of liquidity leading to a slump in the trading volumes, a massive breakout to $1, although anticipated might take longer to materialize.
Crypto volatility is at some of the lowest levels ever right now. ADA/USD 3 month daily annualised vol is at 67%, down from >100% a year ago. Going back to Feb 2018, 93% of the time volatility was higher
— ADA whale (@cardano_whale) September 14, 2023
Key milestones likely to help traders and investors make informed decisions while ADA price climbs are the resistance/support areas highlighted by the 50-day Exponential Moving Average (EMA) (red) at $0.2701, the 100-day EMA (blue) at $0.2891 and the 200-day EMA (purple) at $0.3202.
Notably, the short-term outlook is much stronger with the MACD donning a vivid buy signal on the four-hour chart. ADA price is also sitting above support provided by the 50-day EMA at $0.2506, although the 100-day EMA at $0.2544 might delay the run-up to $0.26 and subsequently $0.3.
With the Supertrend indicator now trailing ADA price, there’s a higher chance of the bullish momentum backing the next Cardano rally. Besides a 61.8% retracement is anticipated to stretch from $0.23 to a confluence resistance created by the 200-day EMA and the 61.8% Fibonacci level at $0.2634.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.