ADA could reach new all-time record after testnet update

Cardano

(ADA) reached a new all-time high (ATH) on August 23 and is now trying to reach another ATH. Sponsored

Cardano

is following a short-term falling resistance line, a break of which could trigger an upward move towards a new all-time high.

ADA Reaches New ATH

ADA

has

been moving upward since July 20, when it traded at a low of $1.02. So far, it has reached a peak of $2.97, which occurred on August 23. This is also a new all-time record high.

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Initially, the token generated a bearish divergence (blue) and caused the price to drop. However, this was followed by a hidden bullish divergence (green), a strong sign of trend continuation. In addition, the MACD

is positive and rising.

ADA is currently making another attempt to reach a new all-time high. It will be testing a new ERC-20 converter

in its test network this week, and this event could also have a positive impact on its price.

The next nearest area of resistance is at the $3.34 level. This is the resistance level of 1.61 external Fib retracement measuring the latest part of the decline.

ADA could reach new all-time record after testnet updateADA could reach new all-time record after testnet update Source: TradingView

Future Movements

Cryptocurrency trader @CryptoCapo_

outlined the

ADA chart, stating that the token

faces short-term resistance at $2.65. In order to move up, it needs to regain it. ADA could reach new all-time record after testnet updateADA could reach new all-time record after testnet update source: <a href=”https://twitter.com/CryptoCapo_/status/1431190181130952705″ target=”_blank” rel=”noopener”>Twitter

Since the tweet, the token has regained this area, which is now expected to act as support. However, ADA is also following a descending resistance line, valid from the aforementioned all-time high.

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Nevertheless, the trend can be considered bullish as long as ADA is trading above the $2.55 support area.

Moreover, MACD is positive and RSI

is above 50, both signs point to a short-term bullish trend. ADA could reach new all-time record after testnet updateada source: TradingView

Wave count

Wave

count indicates that ADA is in the fifth wave of a bullish impulse (white) that began in March 2020.

The most likely area for the top of the upward movement is between $3.39-3.51. The target is formed by the 1.61 outer Fib retracement level (black) and by the projection of wave lengths 1-3 to the bottom of the fourth wave.

ADA could reach new all-time record after testnet updateada Source: TradingViewExplanation

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