Skip to content

Cardano Price Leaps and Sends Positive Signal, Bullish Price Forecast

Steve Miley trader
Updated 27 Oct 2022

Trade Cryptos Here Your Capital Is At Risk

Key points:

  • The Cardano Price Leap This Week Rejected a More Bearish Tone
  • The Bullish Price Signals Sets a Short-Term, Maybe Better Base
  • Upside Cardano Price Forecasts

The Cardano price leap this week has challenged notable down trend resistance and sets up for a more sustainable basing and recovery theme. Upside risks for November are towards 0.4377, 0.4632 then maybe 0.4901, and even 0.5199 into year-end.

new-recommended-broker-banner

The Cardano Price Leap This Week Rejected a More Bearish Tone

In our article last week on Cardano (ADAUSD), we highlighted a bearish signal and shift in outlook in at least the short-term. The prior break below the basing trend line from the May and July lows (at 0.3885 and 0.4028) was reinforced in mid-October with an acceleration through these lows, at first to 0.3495, but then to a new low posted last Friday (21st October) at 0.3301.

However, significant, latter October gains have seen some short-term bullish signals (see below) and therefore, for now have rejected the more bearish theme we had previously highlighted.

Daily Cardano Chart
Source: IG.com

Also read: What Is the Crypto Fear and Greed Index?

The Bullish Price Signals Sets a Short-Term, Maybe Better Base

Moreover, the bullish Hammer candlestick from last Friday has produced a robust rally through modest chart resistance levels, most notably swing peaks at 0.3758 and 0.3889. But more recently, the Tuesday surge and subsequent probes higher this week have seen a challenge to and push just above the downtrend line off of the August recovery peak at 0.5947 and through the September swing high at 0.5199.

This is a far more robust technical signals and minimally indicates a short-term bullish reversal, with risk for this positive price action to reinstate the intermediate-term basing theme from May.

Upside Cardano Price Forecasts

With the chart focus now switched to the upside, a more robust technical analysis outlook will require further price action above the bear trend lien from August and above a notable impulse resistance at 0.4268. Through here would set November targets at 0.4377, 0.4632 and 0.4901. Overshoot threat into year-end would be still higher towards 0.5199.

Back below Tuesday’s impulse low at 0.3569, however, would quickly put the recent cycle low at 0.3301 into the spotlight. Surrender here would potentially aim down to .0.3000/2950, and possibly towards .0.2550/2525.

Steve has 29 years of financial market experience including 3 years at Credit Suisse and 15 years at Merril Lynch. Steve is the Academic Dean for The London School of Wealth Management and has won many awards from Technical Analyst Magazine.