In an analysis released on TradingView, the pseudonymous crypto analyst Melika Trader has shared a technical outlook for Cardano (ADA), emphasizing a long-term bullish scenario with a price target of $1.8. Through chart patterns and key price levels, Melika provides insights on both short and long-term price behaviors of ADA.
Long-Term Cardano Price Forecast
Melika highlights a crucial support zone for ADA between $0.30 and $0.35. Historically, this range has demonstrated notable buying interest, marked by an engulfing candle pattern and established supply and demand (S&D) regions. This foundational structure indicates a strong support level where Cardano has repeatedly attracted market support.
The analyst notes the potential for a bullish reversal, mentioning that ADA’s price action appears to be forming a bottom within this support zone. “The price seems to be developing a bottom after engulfing the support area, indicating a potential bullish reversal,” Melika remarks.
Looking forward, Melika sets a long-term resistance target between $1.20 and $1.80. This target is not random, but based on previous price peaks, establishing it as a notable obstacle for future price developments. If ADA can hold its support base, the path to these upper resistance levels may become clearer as buyer confidence rebuilds, paving the way for a potential bull market.
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“The next significant resistance lies in the $1.20-$1.80 region, denoted as a long-term target that corresponds to prior highs. If the current support remains intact, ADA could set itself up for a prolonged rally towards this long-term objective, particularly as buyer confidence strengthens,” Melika comments.
However, she also warns investors of a bearish scenario if ADA fails to maintain the $0.30 support level. A drop below this threshold could trigger a decline to levels beneath $0.18, posing a considerable risk for holders. “A failure to sustain support around $0.30 might lead to the price retesting below $0.18,” Melika cautions.
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ADA Price Evaluation: Short-Term Perspective
In the short term, ADA is hovering around a significant support zone identified between $0.33 and $0.34, coinciding with a lower trendline that emphasizes its relevance. “A bounce from this support zone could lead ADA to target the resistance area at $0.38 – $0.39. The engulfed zone suggests a potential reversal signal,” asserts the crypto analyst.
This resistance level at $0.39 marks a pivotal point where previous sellers have dominated the market, making it a crucial area for ADA’s immediate price movement. Successfully breaking through this resistance could affirm the bullish rebound narrative. “The $0.39 level is a key resistance where sellers previously influenced the market significantly, thus it’s a vital area to monitor for any potential breakout,” Melika explains.
On the other hand, if ADA cannot sustain its current support, the price may drop toward the broader long-term support at $0.30, reinforcing the downside risks noted by Melika.
At the time of writing, ADA was trading at $0.3437.
Featured image from Shutterstock, chart from TradingView.com
