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In an analysis published on TradingView, anonymous crypto analyst America Trader provided a technical forecast for Cardano (ADA), highlighting a long-term trend with a target price of $1.8. Using chart patterns and key price levels, America provides short- and long-term perspectives on ADA’s price movements.
Long-term casino price outlook
America is targeting a key support area for the ADA between $0.30 and $0.35. This range has historically shown strong buying interest, characterized by a full candlestick pattern and previously established supply and demand (S&D) areas. This fundamental formation suggests a solid environment where Cardano has consistently gained market support.
The analyst points to the potential for a bullish reversal, noting that ADA’s price action appears to be making a low within this support area. “The price appears to be lower after filling the support area, indicating a potential reversal,” said America.
Looking ahead, America sets a long-term resistance target between $1.20 and $1.80. This target area is not arbitrary but is based on previous price peaks, making it a major barrier to future price action. If ADA is to maintain its support base, a path to these higher resistance levels could be seen as consumer confidence revives, setting the stage for a potential bull run.
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“The next major resistance is in the $1.20-$1.80 area, marked as a long-term target, which coincides with the previous high. If current support holds, the ADA may be in position for a sustainable rally toward long-term targets, especially as consumers regain confidence,” America wrote.
However, he also cautions investors against a scenario where ADA fails to maintain the $0.30 support level. A breach below this threshold could lead to a decline to levels below $0.18, which presents significant risk to owners. “Failure to find support around $0.30 could push the price back below $0.18,” American warned.
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ADA Price Analysis: Short-Term Outlook
Currently, ADA is hovering around a strong support zone identified between $0.33 and $0.34, which is aligned with a lower trend line that underlines its importance. “A bounce from this support area could see ADA heading towards the resistance area at $0.38 – $0.39. A mixed zone suggests a reversal signal,” said the crypto analyst.
This resistance area at $0.39 represents a key point where previous sellers held, making it a key area for short-term ADA price action. A successful breach of this resistance would confirm a bullish rebound situation. “The $0.39 area is significant resistance where sellers previously controlled the market, making it an important area to watch for any breakout,” America said.
Conversely, if ADA fails to sustain its current support, the price may retreat to the broader long-term support at $0.30, supporting downside risks highlighted by America.
At press time, ADA traded at $0.3437.
Featured image from Shutterstock, chart from TradingView.com
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