Daily Cardano ADA Technical Analysis

• Cardano price rose by >25% over the last two days.

• The RSI is about to creep into the overbought zone.

Since December 24, 2020, the Cardano price has rallied from $0.14 to $0.44, going up by more than 200%. In fact, over the last two days, ADA rose by more than 25%, from $0.346 to $0.44, growing by >25%.

 

Cardano Price Breaches $0.40 Mark

Currently, the Cardano price has bounced up from the 20-day SMA over the last two days and jumped from $0.346 to $0.44, reaching a three year high.

 

Image: ADA/USD daily chart

IntoTheBlock’s IOMAP shows a lack of substantial resistance barriers upfront, which should give buyers a free path to grow the Cardano price even more. However, the relative strength index (RSI) has crept into the overbought zone, which could trigger a price correction.

Image: IntoTheBlock

However, on the flipside, the MACD shows that the market momentum is becoming increasingly bullish. This could mean that while the Cardano price may grow some more and possibly breach the $0.50 level before facing bearish correction.

Image: ADA/USD 4-hour

 

Cardano Price Is Expected To Reach These Levels

Cardano price may climb to the $0.50 psychological level, given its current market momentum. However, since the RSI has already crept into the overbought we can expect ADA to experience a bearish correction, at least in the short-term. However, if the price does drop, the IOMAP shows healthy support at $0.39, which should absorb a lot of selling pressure.