Cardano (ADA) has been rising in price since October 21, adding around 22%. The correction is over, and ADA could start a fresh uptrend, according to both the wave count and the RSI.
The weekly chart’s technical analysis reveals that the price of ADA has been declining ever since it hit an all-time high of £2.67 in August last year. The altcoin’s price hit a low of £0.28 in October 2022 as a result of the bear market.
The £0.31 horizontal area was confirmed as support by the low and subsequent bounce. This is an important region that served as resistance in May 2018 and January 2021. The price rose quickly to an all-time high following its breakout.
Furthermore, the weekly RSI is very bullish. The indicator is breaking out from its negative trendline and has created bullish divergence. The divergence would be validated by the breakout, signaling an upward movement.
The closest resistance level, in the event that there is an upward movement, would be at £0.50.
A closer examination of the coin’s price movement on the daily timeframe reveals that the last decline started on September 10 after the price completed its lengthy bearish triangle’s wave count.
Since then, it appears to have finished a five-wave decline, which reached its peak at the previously noted £0.28 low.
Both the fact that the October 29 high of £0.38 was above the breakdown level and the daily RSI’s rise above 50 after it broke out from its bearish trendline show that the correction has been completed.
Therefore, the wave count and RSI both point to a bottom having been reached by the ADA price.
A decline below £0.28 would invalidate this thesis, suggesting new lows for the asset.
Although there hasn’t been any significant event in the last 24 hours, the price of ADA has been declining. As a result, the earlier gain has likely caused this to be a short-term correction.
Earlier, ADA co-founder Charles Hoskinson, requested a partnership between ADA and DOGE as Elon Musk completed the acquisition of Twitter. Musk has never shied away from promoting DOGE, which could be why the ADA co-founder made a Twitter reference in his offer. Hoskinson was apparently keen for a partnership between Twitter and DOGE.
DOGE has eclipsed ADA in terms of market value, according to CoinMarketCap. The price correlation alone, though, would indicate partiality without taking into account aspects of the ADA chain.