Cardano’s native token has been thriving amid the latest green environment, with its valuation climbing to a peak not seen since May.
Naturally, the major ascent has drawn multiple bullish predictions from analysts, but certain elements suggest a correction could also be in the cards.
The Next Upward Move?
As of press time, ADA is worth around $0.25, up about 30% in a week. X user CW claimed that the asset is showing an accumulation signal while gradually rising.
“Accumulation is taking place at the current level. It is gathering energy for its next upward move. MACD and EMA trends are forming a bullish momentum,” they added.
For his part, Jesse Olson argued that Cardano’s cryptocurrency has flipped “ultra bullish” on the daily chart, with the price breaking above a vital zone and continuing to make higher highs and higher lows. Shortly after, the analyst estimated that ADA has a pending buy signal on the weekly chart, noting that it hasn’t been bullish on the seven-day timeframe in 14 months.
More Crypto Online also weighed in, saying the token continues to follow a specific bullish price channel and setting $0.315 as the next target to watch.
Somewhat expected, X user Sssebi, who has issued optimistic price predictions even when ADA traded at much lower levels over the past several months, couldn’t stay silent amid the rally. They simply claimed the token could do “something really crazy” without providing a specific target.
Those who want to explore additional forecasts can read our detailed article here.
Short Setup?
X user Mork differentiated themselves from the overall bullish sentiment, describing ADA as one of their favorite short setups right now. The market observer noted the asset’s strong recent performance but said they won’t rush to chase the first move away from resistance.
“I’m waiting for another move into the level. If buyers don’t step in there, I’ll take a closer look at the short,” they said.
Meanwhile, ADA’s Relative Strength Index (RSI) suggests that the asset may indeed experience a short-term correction. The ratio has risen into overbought territory above 70, meaning the price has soared too much in a short period, and it might be time to cool off. Conversely, readings below 30 are usually interpreted as buying opportunities.
Source: CryptoPotato
