Cardano short-term Price Analysis: 24 June

Disclaimer: This following analysis attempts to foresee ADA’s price movements leading up to a potential breakout in the next 24-hours. 

Cardano’s upcoming Shelley mainnet release has fueled quite a stir in the community. Over the past couple of weeks, this has translated into positive price action for the cryptocurrency, with ADA on a consistent uptrend on the charts, despite some pullbacks in the market. At the time of writing, Cardano was valued at $0.0846, with ADA observed to be the 10th-largest cryptocurrency by market cap on CoinMarketCap’s charts.

Cardano [ADA] 4-Hour Chart

Source: ADA/USD on TradingView

At the time of writing, Cardano’s price candles were observed to oscillating between the trendlines of an ascending channel, the completion of which is expected to happen in the next 24-hours.

A breakout towards the downside is expected to transpire following the same. However, the daily moving averages were observed to be aligned with the bulls on the charts. The 50 DMA [Pink] underwent a golden cross with the 200 DMA [Purple] in the third week of May. The two DMAs have been diverging since. In addition, both the 50 as well as the 200 DMA were resting below the ADA price candles, preventing the coins from a further decline in the charts since they were acting as crucial supports.

Source: ADA/USD on TradingView

The Relative Strength Index has closely followed ADA’s price movements and despite several pullbacks, it remained well above the 50-median line, underlining an increase in high buying pressure sentiment among investors in the ADA market, ahead of the crucial transition.

If a bullish breakout does materialize, as predicted by the moving averages as well as the indicators, ADA could climb all the way to $0.088 in the next 24-hours. If the bullish trend persists, ADA could also target the next resistance at $0.095, a level that was last seen a year back in June 2019, while the support points stand firm at $0.076, $0.071 [depicted by the VPVR indicator] and the two moving averages support the coin’s price against further downward movement.