Cardano (ADAUSD) Technical Analysis: Uptrend Ready to Resume?

Cardano bounced off the bottom of its ascending channel on the 1-hour chart, setting its sights on the upside targets marked by the Fib extension tool. Price is nearing the 38.2% level in line with the mid-channel area of interest.

Stronger bullish pressure could take Cardano up to the 61.8% Fib that lines up with the swing high around 0.0812 or the 78.6% level at the top of the channel. The full extension is located at 0.0870.

The 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside or that the uptrend is more likely to resume than to reverse. However, the gap between the moving averages is narrowing to signal weakening bullish momentum and a possible bearish crossover. In that case, price could still test the channel support or even break below it.

Stochastic looks ready to turn lower to signal a return in bearish momentum even without hitting the overbought region. RSI is also pointing down halfway on its climb, also suggesting that sellers might be eager to return. The 100 SMA appears to be holding as dynamic resistance for now.

Bullish price forecasts are back in play for Cadano, with some predicting as much as 8,000% in gains to around $10 per token next year. For one, a partnership is on the way between Cardano and Metaps Plus, which isĀ one of the largest mobile companies in South Korea.

Apart from that, ATMs for Cardano are expected to be rolled out in Japan and more real-world applications are expected to be unveiled next year. Market analysts also predict that the market cap of the coin could surge to about $40 billion by December this year. Anticipation for its Coinbase listing is also propping Cardano price up.

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