ADA Could Reach New All-Time High as Upgrade Rolls Out on Testnet

Cardano (ADA) reached a new all-time high (ATH) price on Aug. 23 and is currently making an attempt at reaching yet another ATH.

It is following a short-term descending resistance line, a breakout from which could trigger an upward movement towards a new all-time high.

ADA reached new ATH

ADA has been moving upwards since July 20, when it was trading at a low of $1.02. So far, it has reached a high of $2.97, doing so on Aug. 23. This is also a new all-time high price. 

The token initially generated bearish divergence (blue) and caused a drop in price. However, it has followed that up with hidden bullish divergence (green), a strong sign of trend continuation. In addition to this, the MACD is positive and increasing. 

ADA is currently making another attempt at reaching a new all-time high. This week, it will test a new ERC-20 converter in its testnet, and event that could also have a positive effect in its price.

The next closest resistance area is at $3.34. This is the 1.61 external Fib retracement resistance level when measuring the most recent portion of the drop.

Chart By TradingView

Future movement

Cryptocurrency trader @CryptoCapo_ outlined an ADA chart, stating that the token is facing short-term resistance at $2.65. It has to reclaim it in order to move upwards.

Source: Twitter

Since the tweet, the token has reclaimed the area, which is now expected to act as support. However, ADA is also following a descending resistance line, in place since the aforementioned all-time high. 

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

In addition to this, the MACD is positive and the RSI is above 50, both signs of a short-term bullish trend.

Chart By TradingView

Wave count

The wave count indicates that ADA is in wave five of a bullish impulse (white) that began on March 2020. 

The most likely area for the top of the upward movement is between $3.39-$3.51. The target is created by the 1.61 external Fib retracement level (black) and by projecting the length of waves 1-3 to the bottom of wave four.

Chart By TradingView    
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