Cardano‘s price is pretty down in the weekly chart for almost half a year being unimpacted by the bullish market trends. No doubt, ADA price did attempt to pull a massive leg up multiple times but eventually failed to hold above the gained levels. However, amidst the bearish cartel being outspread within the space, Cardano is flashing a bullish signal to begin surging high very soon.
Before diving into ADA, one major factor which suggests the crypto markets may go bullish soon is the possible rejection of the S&P 500. The index has been recovering in the past week due to which the crypto markets remained uncertain. However, the index is expected to rise to its initial resistance at 50-day MA levels and face a rejection here. The rejection may drag the price to the recent bottoms which may induce significant bullish momentum in the crypto space.
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On the other hand, RSI in the higher time frame is extremely bullish and hence a significant breakout may be expected soon.
Currently, the trade set-up for the ADA price is pretty bearish, but specifically, the descending trend is all set to end soon. The price being at the apex of the descending triangle may break down as the asset has formed 3 consecutive Doji candles, signifying induced bearish pressure. However, the recent candle does point out toward the swelling buying volume but it lags the momentum required to outperform selling pressure.
Therefore, a breakdown from these levels appears quite possible in the next couple of days. However, with a retest, the ADA price may jump in action to regain the levels close to $0.65. Adding to the substance, the RSI is extremely bullish in the weekly chart. After a pretty long time, the indicator has flashed out a possible bullish divergence.
Since the beginning of the 2021 trade, the RSI maintained its trend within a descending parallel channel, irrespective of the ADA price rally. However, recently, some days before, the RSI flipped from the middle bands of the channel and a rebound was validated recently. As the RSI has slowly changed its path, the Cardano price is also expected to do so. Therefore, the asset is expected to close the monthly & the quarterly close on a bearish note but could rebound significantly soon.
The RSI may also slice through the parallel channel and gain levels close to 50 which may induce significant bullish momentum in ADA price.
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