Cardano may soon be on its way towards a 2020 comeback

Cardano’s price has moved across the spectrum, right from the start of 2020. While the first six weeks of the new year saw its price rise steadily and significantly, the weeks since mid-February saw the price plummet by over 50 percent. Interestingly, the current sentiment surrounding Cardano looks like it will enable a decisive reversal in its fortune.

At press time, Cardano was trading at $0.029, with a market cap of $787 million. Over the past 24-hours, the coin had registered a 2.08 percent increase in its price, with a trading volume of $87 million.

1-day chart

Source: ADA/USD, TradingView

As per the 1-day chart, Cardano’s price has been in an ascending triangle formation since the March 12 price crash. In such a scenario, the possibility for Cardano is to see its price increase in the coming days. 

At the time of writing, for Cardano, there was a recently-tested support at $0.023, one which may be tested in the unlikely scenario in which the price was to fall even further. However, dictated by the formation Cardano’s price is in, there is a greater chance that it may be north-bound since it was close to testing the resistance at $0.032, which was the immediate target for Cardano at this point.

The next resistance for Cardano was at $0.037, which is also a likely target price for Cardano in the next few weeks. If the coin were to reach Target 2, that would be a 20 percent surge in price. There are also other strong points of resistance at $0.045 and $0.052, if the coin were to make a complete recovery.

Source: ADA/USD, TradingView

For Cardano, on the 1-day chart, the MACD registered bullish sentiment as a bullish crossover had taken place a few days ago. At press time, the MACD line was diverging from the signal line and indicated that the price was likely to see a rise in the coming days. The RSI indicator on the other hand, over the last few days, climbed out of the oversold zone and was traveling towards the overbought zone.

Source: Coinmetrics.io

Ever since the start of 2020, Cardano has seen an increased correlation with Bitcoin. There has been a steady surge in the correlation as it has increased from 0.60 to 0.84. As per the 1-day chart, Bitcoin was showing bullish sentiment and may help Cardano’s price in the coming weeks.

Conclusion

At the time of writing, Cardano’s price was likely to rise and move towards Target 1 at $0.032 and Target 2 at $0.037 in the coming weeks, as per what was implied by the price action formation and the indicators.

However, if bearish forces kick in over the coming days, Cardano may end up moving towards the previously tested price point at $0.023.