Cardano (ADA) Analysis: Price Targets Set as Trendline Break Approaches

Cardano (ADA) Targets $0.39 as Key Trendline Break Approaches

Cardano (ADA) has been trading below a descending trend line since May 20. Currently priced at $0.37, the altcoin's value has fallen by 24% during this period. However, ADA has experienced a resurgence in demand over the past week, driving its price closer to the trend line. The technical setup on the one-day chart indicates a potential breakout above this resistance level.

Cardano Makes a Move Toward the Trend Line

• ADA's price has risen by 8% in the past seven days, aligning with broader market growth, reflected in a 5% increase in global cryptocurrency market capitalization.
• The coin's rising On-Balance-Volume (OBV) suggests strong market demand has fueled ADA's price growth.
• The OBV indicator measures buying and selling pressure; when it increases, it indicates that buying pressure is outpacing selling, signaling a bullish trend.

At press time, ADA's OBV stands at 42.54 billion.

Cardano Price Analysis

• ADA's positive Elder-Ray Index further supports the bullish trend, currently above zero at 0.0088.
• A positive Elder-Ray Index indicates strong bullish momentum in the market, as buyers remain in control.
• Since August 25, ADA's Awesome Oscillator (AO) has been displaying upward-facing green histogram bars, confirming bullish momentum.

ADA Price Prediction: Demand Will Push Coin Above Trend Line

Bullish sentiment also remains strong among ADA's futures traders, as indicated by its positive funding rate of 0.0023%. A positive funding rate suggests higher demand for long positions than short ones, indicating that more traders are betting on a price rally than a decline.

If ADA continues to see accumulation from market participants, it could break above the descending trend line and reach $0.39.

However, if the market trend shifts and sell-offs increase, the altcoin's value could drop to $0.27.