Cardano is approaching a critical resistance level at $0.29, with technical indicators flashing bullish signals even as overbought conditions begin to build. The cryptocurrency's relative strength index (RSI) currently sits at 64.46, a reading that suggests strong upward momentum but also edges closer to territory that often precedes a pullback.
Technical indicators point higher
The moving average convergence divergence (MACD) indicator has turned bullish, aligning with the recent price action. Traders watching the charts see a potential 15% upside to $0.32 within the next 14 days if the $0.29 level gives way. That move would mark a notable recovery from recent lows and put Cardano back in territory not seen in weeks.
Overbought risks temper the outlook
Despite the encouraging signals, the RSI at 64.46 is creeping toward the overbought threshold of 70. A reading above that level historically has preceded short-term reversals or at least consolidation. The building overbought conditions create technical resistance of their own, even as the MACD continues to support higher prices. Whether buyers can sustain the push through $0.29 without triggering a wave of profit-taking remains the open question.
The next few trading sessions will show if the bullish momentum can overpower the overhead supply. If Cardano fails to break past $0.29, the recent gain could stall, and the price might slip back toward lower support levels. A clean break above that mark, however, would open the path to $0.32 and possibly draw in more momentum-driven buying.
