The price of Cardano (ADA) has increased since October 19 and reached the $0.30 resistance area today.
Will the ADA price break out on the first try, or is an initial retracement on the cards?
Cardano Bounces – Begins Upward Movement
The weekly timeframe technical analysis for ADA shows that the price has traded above the $0.25 horizontal support area since the start of the year.
While it fell below this area in June, it created a long lower wick (green icon) and reclaimed it afterward.
The weekly Relative Strength Index (RSI) is gradually turning bullish.
Traders utilize the RSI as a momentum indicator to assess whether a market is overbought or oversold and whether to accumulate or sell an asset.
If the RSI reading is above 50 and the trend is upward, bulls still have an advantage, but bears are in control if the reading is below 50.
The RSI is increasing and has almost crossed above 50 (green circle).
ADA/USD Weekly Chart. Source: TradingView
There has been some interesting Cardano news this week.
Following the SPO-Poll and a subsequent assessment by the Parameters Committee, the Cardano Foundation has effectively executed a transaction on the Cardano mainnet to reduce the minPoolCost parameter from 340 to 170 ADA.
Cardano’s founder, Charles Hoskinson, announced that the foundation is supercharging the team around the Djed stablecoin.
Finally, the Cardano Summit is quickly approaching. It will be held on November 2-5 and will be accessible by Non-Fungible Token (NFT) tickets.
During the summit, these ten projects will compete in the Battle of the Builders final to win significant prizes.
ADA Price Prediction: Will Cardano Break Through $0.30?
The daily timeframe technical analysis shows that the ADA price broke out from a descending resistance trendline on September 18.
After creating a higher low on October 19, the Cardano increase accelerated. This led to a high of $0.39 today.
Despite the high, ADA has not broken out from the $0.30 horizontal resistance area yet.
The daily RSI supports the continuing of the increase. The indicator is above 50 and increasing, both signs of a bullish trend.
So, if ADA breaks out above $0.30, it can increase by another 30% and teach the July high at $0.38. Cryptocurrency trader CryptoFaibik believes the price will successfully break out from this resistance.
ADA/USDT Daily Chart. Source: TradingView
Despite this bullish ADA price prediction, a rejection from the $0.30 horizontal resistance area will likely lead to an 18% drop to the closest support at $0.24.
