Cardano (ADA) recently showed a slight recovery, with its price rising above $0.70, thanks to the market's recent strength.
This upward trend has sparked new optimism among investors. If the bullish momentum continues, Cardano could break through $0.80, which could bring significant changes to its price trajectory.
Will Cardano End Its Downtrend?
Cardano's technical indicators recently showed potential reversal signals after a death cross formation. 16 days ago, the 200-day Exponential Moving Average (EMA) crossed below the 50-day EMA, indicating a downtrend. This is considered a negative signal in technical analysis.
However, the recent recovery above $0.70 and continued bullish momentum suggest that ADA could rise above $0.80. If this reversal occurs before the start of April, it would be the shortest death cross in Cardano's history, in stark contrast to the 56-day period from March to May 2020.
From a macro perspective, Cardano's bullish momentum is supported by various technical indicators. Notably, the Relative Strength Index (RSI) is positioned above the neutral line at 50.0, reaching its highest point in seven weeks. This indicates increasing investor confidence and growing buying pressure. The RSI's upward momentum emphasizes the market's positive outlook on ADA and suggests that Cardano is gaining attention after a period of relative stagnation.
With its strong RSI reading, ADA appears to be benefiting from a revival of investor interest. This could help sustain the altcoin's price increase in the short term. If the bullish momentum continues, Cardano could experience significant price appreciation, reaching new resistance levels and providing profitable trading opportunities.
ADA Price Must Break Out of This Zone
Cardano's price is currently trading at $0.70, having risen 13% in the last 24 hours. If this strength continues, ADA is likely to face resistance near $0.77. Historically, the range between $0.70 and $0.77 has been an adjustment zone. Successfully breaking through $0.77 could suggest further movement to $0.85.
Breaking through $0.77 could strengthen Cardano's upward momentum and push the price higher. Additionally, breaking above $0.80 would suggest that Cardano is prepared to resume its long-term bullish trend.
However, the bullish outlook becomes invalidated if Cardano fails to maintain its current price level. If ADA drops below $0.70 and declines to $0.63, the recent upward trend could disappear, leading to further decline. In this case, the positive momentum would be considered short-term, and the downtrend could be reinforced.
