The Cardano (ADA) price has decreased slightly since December 14, when it reached its yearly high of $0.68.
The rally has begun to show signs of weakness in lower time frames. Will ADA muster enough strength to end the year on a positive note?
Cardano Struggles After Yearly High
The weekly time frame technical analysis shows that the ADA price had traded in a horizontal range since the start of the year. After consolidating near the range low, ADA began a rapid upward movement in October.
Since then, ADA has increased by 150%, culminating with a new yearly high of $0.68 on December 11. In the ten weeks since the upward movement began, ADA has created nine bullish candlesticks, moving outside of its long-term range.
Traders utilize the RSI as a momentum indicator to assess whether a market is overbought or oversold and whether to accumulate or sell an asset.
If the RSI reading is above 50 and the trend is upward, bulls still have an advantage, but if the reading is below 50, the opposite is true.
The weekly RSI is increasing and is above 50, both signs of a bullish trend. Despite being overbought, there is no bearish divergence to warn of an impending decrease.
Read More: How to Stake Cardano (ADA)
What Are Analysts Saying?
Cryptocurrency traders and analysts on X have a bullish view of the future ADA price trend.
Crypto Yapper believes the price will break out from its symmetrical triangle. He tweeted:
“The price of #Cardano is getting squeezed into this apex which will break soon. Most of the times these formations will follow the trend, and the trend is up. What are your thoughts about #ADA?”
BuyDipCrypto also charted a symmetrical triangle and believes the breakout from it will catalyze the upward movement.
Finally, Valeriya believes the price will increase because it has consistently created higher lows.
Read More: How to Stake Cardano (ADA)
ADA Price Prediction – Will the Yearly High Stand?
Elliott Wave theory involves the analysis of recurring long-term price patterns and investor psychology to determine the direction of a trend.
The most likely Elliott Wave count indicates that the ADA price has reached the top of wave three (black) in a five-wave upward movement.
Wave three has extended and has 2.61 times the length of wave one. The sub-wave count is given in white.
This outlook is supported by the daily RSI, which has generated a bearish divergence (green).
If the price starts wave four, ADA could decrease by 15% to the 0.382 Fib retracement support level at $0.50.
Despite this bearish ADA price prediction, moving above the yearly high will mean wave three has extended. Then, ADA can surge by 45% to the next resistance at $0.88.
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Disclaimer
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