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In analysis published On TradingView, cryptocurrency analyst Melika Trader provided a technical forecast for Cardano (ADA), highlighting a long-term bullish scenario with a price target of $1.8. Using chart patterns and key price levels, Melika provides short- and long-term perspectives on ADA price action.
Cardano long-term price forecast
Melika identifies an important support area for ADA between $0.30 and $0.35. This range has historically shown strong buying interest, and is characterized by an engulfing candlestick pattern and pre-identified supply and demand (S&D) zones. This fundamental formation indicates a strong ground as Cardano has consistently gained market support.
The analyst points to the possibility of a bullish reversal, noting that ADA’s price action appears to be forming a bottom within this support area. “The price appears to be bottoming after sweeping the support area, indicating a potential bullish reversal,” Malika says.
Looking ahead, Malika sets a long-term resistance target between $1.20 and $1.80. This target zone is not arbitrary but depends on previous price highs, making it a major obstacle to future price action. If ADA maintains its support base, the path to these higher resistance levels may materialize with renewed buyer confidence, paving the way for a potential rally.
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“The next major resistance is in the $1.20-$1.80 area, which has been identified as a long-term target, which is in line with previous highs. If current support holds, ADA could be in a position to make a sustained rally towards the long-term target, especially as buyers regain trust.
However, it also warns investors of a bearish scenario as ADA fails to maintain the support level at $0.30. A break below this limit could lead to a drop to levels below $0.18, presenting a significant risk to coin holders. “Failure to hold support around $0.30 could lead to a retest of the price below $0.18,” Malika warns.
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ADA Price Analysis: Short-Term Forecast
In the near term, ADA is moving in a strong support zone defined between $0.33 and $0.34, in line with a lower trend line that confirms its importance. “A bounce from this support zone could lead to ADA targeting the resistance zone at $0.38-$0.39. The engulfed zone indicates a potential reversal signal,” claims the cryptocurrency analyst.
This resistance area at $0.39 represents a critical point that was previously dominated by bull sellers, making it a pivotal area for ADA’s short-term price action. A successful breakout of this resistance may confirm a bullish retracement scenario. “The $0.39 area represents significant resistance as sellers previously controlled the market, making it a critical area to monitor for any breakout,” Malika says.
Conversely, if ADA fails to maintain its current support, the price could retreat towards the broader long-term support at $0.30, reinforcing the downside risks highlighted by Malika.
At press time, ADA was trading at $0.3437.
Featured image from Shutterstock, chart from TradingView.com