Cardano (ADA) Hits Highest Weekly Close Since 2022: $1 Price Target Looming?

• Cardano (ADA) has recently created consecutive bullish weekly candlesticks as it closed above resistance.
• This has led to a bullish outlook, with investors foreseeing ADA climbing above $1 before the end of the year.

Cardano (ADA) has in recent months impressed with its performance as it forges a bullish path to a potential new all-time high. This aligns with the wider crypto market led by Bitcoin (BTC). Remarkably, readings and technical signals point to a continued price increase. However, there are significant risks if the altcoin drops below key support positions.

Data reveals that after six attempts, the ADA price reached a weekly close above a long-term resistance area last week. Notably, this is the highest weekly close since May 2021. This could easily usher in the next long-term bullish cycle.

The weekly timeframe shows that ADA has been on an upward trajectory since September 2023, which culminated with a yearly high of $0.68 reached in December 2023.

Cardano (ADA) struggled to break above the key resistance level of $0.58 despite an upward trend. Instead, it has formed six consecutive long upper wicks, indicating selling pressure that pushed the price back down below the resistance zone.

However, there was a positive turn last week, as ADA managed to climb above the $0.58 level and close the week above it. This marked the highest weekly close for ADA since May 2022, suggesting a potential breakout.

At the time of writing, ADA is trading at $0.583 after a nearly 4% drop in the last 24 hours. This sees the 9th-ranked cryptocurrencies extend their weekly losses to 10%.

ADA is now trading at a critical point with the short-term support in the test. If broken, this could trigger a plummet to the $0.55 long-term support. However, a bounce back from this position could signal strong support from bulls.

This performance confirms the weekly Relative Strength Index’s (RSI) bearishness. This indicator shows whether an asset is overbought or oversold, guiding investors on whether to accumulate or sell.

As CNF reported earlier this month, experts are optimistic about the altcoin’s long-term outlook. Popular crypto analyst Ali Martinez offers a relieving prediction, suggesting that the asset could trigger its bull run earlier than expected. According to him, ADA may rise to $0.8, retrace to $0.6, and then stage a 1233% bull run to hit $8.

However, the analyst warned that prices could stall for a couple of months as the 2020 market behavior plays out. Based on its pattern at the time, ADA could remain in an accumulation phase until April 2024. This could be followed by a bullish breakout targeting his prediction of $8.

For many investors, ADA is one of the most promising projects in the upcoming bull market. The project has been focused on building for the past couple of years; it enjoys cutting-edge technology, adoption, and partnerships from diverse industries, and it has a dedicated community backing it.