Cardano [ADA] navigates through recovery process; eyes 20% upswing

Over the holiday weekend, the global cryptocurrency market along with Cardano [ADA] which posted a weekly recovery of 18.67%.

As the year drew close, several top cryptocurrency assets have climbed significant levels and showed bullish momentum. Cardano wasn’t an exception either. In fact, after a prolonged sluggish price action, Cardano [ADA] depicted an optimistic outlook. The sixth-largest cryptocurrency by market cap was up by 2.50% over the past day which catapulted its price to $1.46. At the time of writing, ADA recorded a market cap of $48.68 billion and a 24-hour trading volume of $1.06 billion.

After sustaining a bullish reversal, ADA was now eyeing for almost 20% ascent and this is what the chart reveals-

Cardano [ADA] Daily Price Chart:

As a result of November blues, ADA was trapped inside the trendlines of a descending channel. However, over the past weekend, the asset recovered significantly and finally underwent a bullish breakout. During the first leg up, ADA breached a crucial resistance level of $1.41. The diverging Bollinger Bands [BB] depicted incoming volquireatility which may help the asset to target its next ascent. 

Meanwhile, the simple moving averages – 50 SMA [Pink] and 200 SMA [Yellow] continued to hover above the price candles while the trading volume remained unimpressive. 

ADA Target Points- What’s next?

The green closing bars of Awesome Oscillator [AO] depicted a bullish momentum in the market. The MACD also aligned with the bulls while the daily Relative Strength Index [RSI] climbed above the 50-median line as buying pressure increased. 

As selling pressure took a hit, Cardano may target more upswings. In that case, the immediate resistance level of $1.72 appears to be the target, which would require almost 20% ascent. If ADA manages to reclaim this level, strong resistance levels of $2.27 and $2.69 will come into play. Besides, the support points stood untested at $1.05 and $0.83 respectively. 

Cardano reached an all-time high this year, a fact that coincided with the much-awaited Alonzo upgrade, in the first half of September. As a result, the upgrade gained a lot of traction from the community and acted as a catalyst driving its price up to a huge extent. While prices started to fall shortly thereafter, the current recovery rate is noteworthy. Nevertheless, 2021 has been a very important year for the entire ecosystem. The upgrade helped the blockchain accommodate the rapidly evolving space of decentralized finance [DeFi] and non-fungible tokens [NFTs]. Hence, the next year may see ADA targetting more highs.