As December draws to a close, Cardano (ADA) has seen a slight dip in its value following its peak at $0.68 on December 14, marking its highest point this year. This recent development has sparked curiosity about whether ADA can regain its momentum to end the year on a high note.
Challenges After Hitting the Yearly Peak
ADA’s journey this year has been quite a rollercoaster. It spent a good part of the year moving sideways, but in October, things took a turn for the better. The price of ADA shot up by 150% since then, reaching a new high for the year at $0.68 on December 11. This upsurge wasn’t a fluke; in the last ten weeks, ADA consistently showed bullish trends, breaking free from its usual trading range.
Traders often look at the Relative Strength Index (RSI) to gauge market momentum. An RSI above 50 usually indicates that the bulls are in control, and that’s precisely where ADA’s weekly RSI is sitting right now. This suggests a bullish trend, despite concerns of being overbought and the absence of any signs pointing towards an imminent drop.
What the Experts Predict
Experts and crypto enthusiasts are keeping a close eye on ADA’s trajectory. Some, like Crypto Yapper, are optimistic, foreseeing a breakout from the current symmetrical triangle pattern. According to him, since the trend is generally upward, the breakout is likely to follow suit.
Others, such as BuyDipCrypto, also see the symmetrical triangle pattern but believe its breakout will be a catalyst for further upward movement. Valeriya’s analysis, highlighting the consistent creation of higher lows, also points towards an upward trend.
Forecasting ADA’s Future Moves
The Elliott Wave theory, which analyzes long-term price patterns and investor psychology, suggests that ADA might be at the peak of its third wave in a five-wave upward trajectory. This theory points out that the third wave is significantly longer than the first. However, the daily RSI shows a bearish divergence, hinting at a potential downturn.
If ADA enters its fourth wave, we could see a decline of around 15% to a support level of $0.50. But, if it surpasses its yearly high, ADA could extend its third wave and potentially surge by 45% to the next resistance level at $0.88.
As the year concludes, the crypto community is keenly watching ADA’s movements, with a mix of cautious optimism and a keen eye on key technical indicators.
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