- Cardano has been caught within an intense rally over the past few weeks, surging amidst a flurry of positive news
- This rally has allowed it to set fresh yearly highs today, and in the near-term, it appears that it will continue climbing higher
- It is important to note that it is quickly navigating up towards a massive high time frame resistance level
- The selling pressure here may be insurmountable and could spark a selloff
- This comes as one analyst is noting that he believes the crypto is flashing some signs of forming a macro top formation
Cardano (ADA) has been one of the strongest top digital assets over the past several days and weeks, finding itself caught within an intense uptrend that has allowed it to climb by over 400% from its mid-March lows.
This strength has largely come about due to the hype surrounding the recent launch of the Shelley mainnet upgrade.
This upgrade is anticipated to help further decentralize the network while also helping to increase the blockchain’s scalability.
Investors do believe that its launch is fundamentally significant, as it has been the primary factor behind ADA’s intense multi-month upswing.
That being said, some analysts are noting that the crypto could be starting to form a macro top formation.
Cardano Up 400% From YTD Lows; Approaches Major Resistance Level
At the time of writing, Cardano is trading up just under 4% at its current price of $0.108, marking a notable rise from weekly lows of $0.08.
The token has been steadily climbing higher over the past few months, shattering multiple key resistance levels along the way.
One analyst is now forecasting further near-term upside, as he believes that it could continue surging until it reaches its next resistance that lies just a hair above its current BTC price of 1,180 sats.
That being said, the analyst also notes that he is expecting a dip that sends it to 900 sats.
“Cardano: Onwards we go. Broke through resistance block like it’s nothing. The next zone is the 1200-1215 sats area, after that 1330-1375 sats. Dips? I’m still looking at 900 sats possibility,” he explained.
Image Courtesy of Crypto Michael. Chart via TradingView.
ADA Could Be Forming a Macro Top
Despite being positioned to see slightly further near-term upside, it is still a strong possibility that Cardano is forming a macro top.
One analyst mused this possibility in a recent tweet, explaining that its chart is signaling that its “nice bull run is coming to a close.”
“I know ADA has some news coming up this month, but this chart is highly suggesting that the top of the nice bull run is coming to a close,” he said while pointing to the below chart.
Image Courtesy of Calmly. Chart via TradingView.
Its reaction to its current resistance may be the factor that determines whether its uptrend will end now, or if it will push higher before losing its strength.
Featured image from Shutterstock. Charts from TradingView.