The breakout that I mentioned in my previous Cardano price analysis has finally occurred. ADA price is targeting more upside due to the ongoing bullish wave in cryptocurrencies. The latest breakout in the BTC price above $30,000 has resurrected many altcoins from their yearly lows.
Analysts believe that approval of the spot Bitcoin ETF is only a matter of time now. Last week’s fake pump has shown what a potential approval of ETF can do to the Bitcoin price. This has resulted in traders stepping over each other to buy the pioneering digital asset before the approval from the SEC.
Consequently, Cardano price is having its fifth green day in a row. Even though the price is still trading within a specific range, the outlook is looking bullish after a recent breakout from the downtrend. However, it may be too soon to call it a proper bullish reversal.
Since ADA is the native asset of the Cardano blockchain, its price action is directly tied to the network adoption. Therefore, the sluggish rate of development has weighed on the ADA price and keeping it low.
However, the recent stats show that the development is picking up, and Cardano has surpassed Ethereum in the weekly development activity.
If we analyze the ADA/USD chart on a daily timeframe, we can easily identify a strong demand zone below $0.24. This zone has resulted in another bounce, and the price has now also broken out of the downward trendline. Therefore, a break above the range highs around $0.27 might result in a bigger push toward the $0.30 resistance level.
It is also worth mentioning here that the invalidation of this bullish Cardano price prediction will be a breakdown below $0.24. This breakdown may tank the price below $0.10, where lies the next major support level. Another major level is the $0.308 level where the 200 MA is present on the daily chart.
This post was last modified on Oct 23, 2023, 11:44 BST 11:44