Cardano (ADA) Technical Analysis: Shelley Testnet Launching Soon, Will ADA Price Break $0.10?
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Cardano appears to be positioning itself for a breakout soon, as ADA’s price continues to consolidate inside a bullish ascending triangle.
During the last 7 days, ADA buyers have managed to drive the price up over 26% from a low of $0.073 to a high of $0.093, and nearly double the trading volume. A tweet from Weiss Ratings earlier in the month, which hyped up the upcoming Shelley Testnet launch, seems to have catalysed this latest wave of support.
The ‘official venture arm’ of Cardano, Emurgo, responded to Weiss Ratings post adding that ADA stakers will have to wait another 3-4 months until the full functionality is made available to the wider community.
Previously, IOHK’s Co-Founder, Charles Hoskinson, had hoped that the Shelley mainnet would be ready before the end of Q1, however the upgrade has proved to be more difficult to roll out than anticipated.
Cardano (ADA) Price Analysis
On the 1D ADA/USDT chart we can see that the asset is on its way to retesting the ascending triangle resistance at $0.094. This particular level has held down the price action on two previous occasions, and poses a major challenge for bullish traders in the short-term.
If bullish traders can close above this level on the daily chart, we should expect ADA’s price to surge beyond the psychological $0.10 level. If bears successfully defend the $0.094 resistance for a 3rd time however, then we could see candles fall back on to the strong uptrending support below before bulls get an opportunity to push back.
The 0.236 fibonacci level at $0.085 has been a vital support for ADA today, after increased selling pressure during the Asian trading session this morning threatened to drive the price action below $0.08. If bulls can hold on above this level, we could see bears start to weaken and give up the resistance above.
Looking at the RSI we can see that the indicator line has been following a strong uptrend over the last 20 days. This shows that bullish momentum is continuing to build behind the asset, which could help to deliver a breakout soon. If we see the indicator line start to fall through the uptrending level, it may be an early sign that ADA’s uptrend is about to reverse.
On the MACD we can see that the 12-MA is still high above the 26-MA, but buying volume on the histogram appears to be waning. This is likely due to the brief bearish correction we saw this morning and may not necessarily be suggesting that Cardano is losing momentum.
Cardano (ADA) Price Targets
All ROIs are calculated from the asset’s current value at $0.088 (AToW).
PT1: $0.094 (6.82%)
PT2: $0.100 (13.64%)
PT3: $0.106 (20.45%)