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The Cardano (ADA) valuation is still performing quite well and has sustained support above $0.81. This point is currently serving as a crucial level in the recovery, gaining even more significance as technical indicators accumulate at this stage. Emphasizing the necessity of maintaining this level, the pseudonymous crypto analyst The Alchemist Trader illustrates the potential outcomes as long as bulls continue their grip.
The Basis For The Cardano Price Surge
In the assessment, the significance of retaining $0.81 is highlighted by various crucial developments. The foremost of these is the reality that this level serves as the 0.618 Fibonacci retracement support. Furthermore, it is also the primary support on the daily timeframe, aiding in the preservation of the bullish momentum. Therefore, the groundwork of the Cardano price surge is established on the $0.81 support.
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As The Alchemist Trader elucidates, the $0.81 level is critical for the ADA valuation at this moment. Historically, it has acted as the demand zone for the altcoin, absorbing sell liquidity and resisting pressure from the bears. In light of this, the analyst posits that holding above this region solidifies the bullish case for Cardano despite other bearish elements such as decreasing volumes.
Additional bullish indicators that have surfaced include the fact that the ADA price has consistently established higher lows and higher highs. Naturally, these higher lows and highs indicate an asset is sustaining its bullish trajectory, and Cardano is no exception.
With each correction dipping into the critical support zone at $0.81 before rebounding, the analyst points out that this indicates that bulls remain in command. Such corrections are ‘healthy resets’ and do not signify exhaustion for the digital asset.
Where The ADA Price Is Heading If $0.81 Endures
Provided that the $0.81 region persists, the ADA price remains extraordinarily bullish. The initial significant upward movement is anticipated to break $1 resistance and elevate it into the $1.16 area. This is the point that bulls will need to conquer to effectively affirm the bullish trend.
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Once $1.16 is surpassed, the resistance at $1.19 comes into focus, and this is where the momentum must hold strongest. This is due to the fact that these regions correspond with “previous resistance levels and Fibonacci extension targets.” Hence, overcoming these will imply that the price can continue to rise.
“A shift toward $1.16 seems plausible, and a breakout beyond that level could propel price action towards $1.19 in the short to mid-term,” the crypto analyst commented.
Featured image from Dall.E, chart from TradingView.com
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