Cardano (ADA) has increased by 2.5% in the past 24 hours. The daily trading volume of this altcoin has also surged by up to 74%.
Meanwhile, Bitcoin is trying to break through the resistance level of $117,500, but has not succeeded yet. Will Cardano continue its upward momentum despite BTC's stagnation?
Will ADA continue to rise?
Using the reversal points from the end of June and July at $0.51 and $0.937, analysts have drawn a series of Fibonacci retracement levels. The results show that the 61.8% retracement level is at $0.673, and this level has nearly been retested as support in the recent correction.
The June peak at $0.73, which was a resistance level two months ago, has now been reclaimed as support. This area is highlighted in light blue and coincides with the moving averages on the daily chart.
Encouragingly, ADA has shown a bullish reaction from this area. Additionally, the CMF indicator is at +0.06, indicating significant buying pressure. The MACD remains above the 0 line and is close to forming a bullish crossover signal again.
Thus, the technical indicators alongside the price action on the daily chart reflect a positive trend, so the price may continue to rise.
The Fibonacci extension levels at $1.03 and $1.2 are the next targets. These levels relatively coincide with strong horizontal levels from November to December 2024.
On the 2-hour timeframe, ADA is at $0.8, surpassing the resistance level of $0.78 that played a role during the correction at the end of July. Supporters of ADA seem to have turned this level into support.
The MFI and CMF indicators also support the assertion that ADA is very optimistic in the short term. Therefore, it is highly likely that Cardano is providing a good buying opportunity at this moment. Meanwhile, the short-term bullish outlook will be maintained as long as the price stays above $0.755.