Long-Term Cardano Price Outlook
In a comprehensive analysis on TradingView, the renowned crypto analyst Melika Trader offers a detailed technical forecast for Cardano (ADA). Highlighting a significant long-term upside scenario with a price target of $1.8, Melika uses chart patterns and key price levels to provide insights into ADA’s potential price movements.
Melika identifies a crucial support zone for ADA that lies between $0.30 and $0.35. Historically, this range has attracted robust buying interest, marked by distinctive engulfing candle patterns and established supply and demand zones. This base formation signifies a strong foundational level where Cardano has consistently received market support.
The potential for a bullish reversal is evident as Melika notes ADA’s price action forming a bottom within this support zone. “The price seems to form a bottom after engulfing the support region, hinting at a potential bullish reversal,” Melika explains.
Looking forward, Melika sets a long-term resistance target between $1.20 and $1.80. This target area is based on previous price peaks, making it a significant hurdle for future price action. Should ADA maintain its support base, this path to higher resistance levels may materialize as buyer confidence is restored, setting the stage for a potential bull run.
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“The next major resistance is in the $1.20-$1.80 zone, marked as a long-term target, which aligns with previous highs. If the current support holds, ADA could be positioned for a sustained rally toward the long-term target, especially as buyers regain confidence,” Melika writes. However, she also advises investors to be wary of a bearish scenario where ADA fails to uphold the $0.30 support level. A breach below this threshold could lead to a decline to levels below $0.18, presenting a substantial risk for holders. “A failure to hold support around $0.30 could see the price retesting to below $0.18,” Melika warns.
ADA Price Analysis: Short-Term Outlook
In the short term, ADA is navigating a strong support zone identified between $0.33 and $0.34, aligned with a lower trendline that underscores its significance. “A bounce from this support zone could see ADA targeting the resistance zone at $0.38 – $0.39. The engulfed area suggests a possible reversal signal,” the crypto analyst observes.
This resistance zone at $0.39 is a critical point where sellers have previously dominated, making it pivotal for ADA’s short-term price action. A successful breach of this resistance could validate the bullish rebound scenario. “The $0.39 zone is a significant resistance where sellers previously controlled the market, making it a critical area to watch for any breakout,” Melika notes.
Conversely, if ADA fails to sustain its current support, the price could retreat towards the broader long-term support at $0.30, echoing the downside risks highlighted by Melika.
At the time of writing, ADA traded at $0.3437. ADA’s price needs to overcome the 0.236 Fibonacci retracement level, as observed in the daily chart.
