In light of Cardano (ADA)'s recent rise of 12% in a single day, investors are beginning to show interest in potential changes in trend. After a month of declines, the recent breakout above the upper boundary of the downtrend could serve as a starting point for further moves.
Breakout of Downtrend
For over a month, ADA's price had been trapped in a downtrend channel, consistently making lower highs and lows. However, this week witnessed a breakout as the price surged from around $0.62 to nearly $0.70.
Future Prospects for ADA
If the upward trend continues, the next target may be the $0.72 level, which previously acted as resistance. A breakout above this level could pave the way for moves towards $0.78 or even $0.80, where the 200-day moving average resides.
Current Market Indicators
Currently, most technical indicators are giving positive signals. However, the high activity in the market and the current levels may suggest overbought conditions, which could lead to short-term corrections.
Cardano shows signs of recovery, but risks remain on the horizon. Future resistance and support levels will be key factors for price movement.
