The last three weeks have been extremely bullish for the price of ADA, rising from $0.37 to its current value of $0.8681, which represents an increase of more than 135%. While the market has slightly retraced in the last 24 hours, the recent movement from a descending wedge suggests that Cardano has room to continue rising regardless of the overall difficulties in the cryptocurrency market.
If Cardano manages to turn the resistance of this wedge pattern, located at $0.89, into solid support, it will confirm the start of a rally of 155% up to $2.30, as indicated by the peak of this pattern. However, the only way for this rally to be sustainable is if the price achieves a decisive close above this resistance.
On the other hand, if the current bearish reversal in the market forces buyers who accumulated ADA during last month's rally to sell, the price may not overcome the wedge resistance. This will force the price of Cardano to operate back within a narrow range inside the descending wedge.
The RSI also indicates that caution is necessary, as Cardano is already at extreme overbought levels. However, buyers could remain active considering that the 50-day EMA is forming a golden cross with the 200-day EMA. Once this signal is confirmed, it is likely that new buyers will enter the market and support the price rise of ADA to $2.30.