Cardano (ADA) 50-Week EMA Flashes Bullish, Is $0.45 On The Way?
November 07 2023 - 9:00AM
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Cardano (ADA) is one of the altcoins that has seen major gains in
recent days, and this has ignited chatter about how the crypto
token could climb. In line with this, Dan Gambardello, the founder
of Crypto Capital Venture, has some answers as he provided insight
into the token’s trajectory using technical analysis. What The
Charts Are Saying About Cardano In a video shared on YouTube,
Gambardello highlighted the fact that ADA saw a weekly close above
the 50-week exponential moving average (EMA), which is something he
labeled as “special” and “something “huge.” This is so because
there are currently similarities between now and the last cycle,
which ushered in the bull market. Related Reading: Shiba Inu-Based
BONE Eyes $1 As This On-Chain Metric Explodes Interestingly, he
noted that Cardano seems to be above the game this time around, as
the close above the 50-week moving average occurred this time while
ADA is still in the accumulation phase, unlike back in February
2020 when it happened just after the accumulation phase. He
also linked the Relative Strength Index (RSI) to these happenings
as he noted that, just like the last cycle, ADA was overbought as
it was preparing for an upside move. Despite the overbought
similarities, he mentioned that this could be different in that ADA
continues instead of a retracement as both the 20-day and 50-day
exponential moving averages haven’t crossed over the 200-day EMA.
Can ADA Make A Move To $0.45? Although the crypto founder admitted
that he didn’t exactly have a target as to what price level ADA
could hit, he mentioned that the daily chart was hinting at $0.45
as a possible target. However, he doesn’t believe Cardano can add
that much gain to hit such height, as he predicts a “big
retracement” soon enough. As to how high he believes Cardano (ADA)
can reach before the retracement, he mentioned that the crypto
token could peak at $0.40 before the expected retracement, which
could see ADA drop to around $0.29 and $0.30 based on the moving
average structure. Related Reading: Bitcoin And Ethereum
Rally Not Over: Crypto Capital Inflows Reach One-Year High Such a
decline will represent about a %15 decline, but Gambardello is
optimistic as he stated that such a dip usually occurs in between
the end of the bear cycle and the start of the bull cycle.
Meanwhile, he said that ADA could also fall to a Fibonacci support
at around $0.26 and $0.28. Despite his prediction that Cardano is
going to fall soon enough based on its overbought status,
Gambardello isn’t ruling the target of $0.45 out. He just believes
it could take longer rather than just seeing all green candles
straight up to that target. At the time of writing, ADA is
currently trading at around $0.35, up over 3% in the last 24 hours,
according to data from CoinMarketCap. ADA bulls break $0.35
resistance | Source: ADAUSD on Tradingview.com Featured image from
FX Street, chart from Tradingview.com
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