Is It Too Late To Buy ADA? Cardano Price Soars 212% In A Month And This Might Be The Next Crypto To Explode

Cardano Price Surge Maintains Bullish Momentum

Cardano has experienced a remarkable surge of 212% over the past month, despite a recent 2.5% dip. Currently trading at $1.08 (as of 10 p.m. EST), the cryptocurrency has witnessed a 25% increase in trading volume, reaching $3.5 billion.

Continued Ascendance Within Bullish Channel

The 4-hour ADA/USD chart exhibits a clear bullish trend. The price remains steady at $1.09331, having recently broken out from a prolonged consolidation period and establishing a well-defined bullish channel. This upward trajectory has gained momentum, resulting in a parabolic curve and sharp acceleration.

Key Support and Resistance Levels

Critical support levels include $0.827, aligned with the 50-period moving average (MA), and $0.515, supported by the 200-period MA. Conversely, the price faces resistance at $1.20, a psychological level that could trigger selling pressure. A breakout above this level may open the path to a potential rise to $1.30.

Moving Average and Momentum Indicators

Moving averages confirm the bullish momentum, with the 50-period MA significantly higher than the 200-period MA. The previous Moving Average Cross signaled the commencement of the uptrend, presenting a lucrative buy opportunity.

The MACD remains positive, indicating continued buying interest. However, the diminishing gap between the MACD line and the signal line suggests a slight slowing of bullish momentum.

Overbought Conditions and Potential Pullback

The RSI, currently at 72.58, indicates overbought conditions. While the bullish trend persists, a short-term pullback or consolidation is possible as the market adjusts to recent gains.

Long-Term Investment Strategy

If the upward momentum continues, the price could potentially break above $1.20 and target $1.30 in the medium term. However, a pullback may test support levels near $0.95 or $0.83.

Long-term investors may consider accumulating during dips near the 50 MA or 200 MA. The overbought RSI emphasizes the importance of cautious entry and exit points in the current market environment.