ADA Bulls Step In, Is $1 Cardano Next?

Note:

Strong gains are usually followed by sharp drops. This is exactly what happened to several altcoins and Cardano.ADA() is not an exception. The pullback usually shakes the weaker hands out before the trend resumes.

Is ADA nearing its peak or does the current dip represent a great opportunity to buy? We’ll analyze the charts and find out.

Cardano price prediction

ADA broke through the resistance of $0.86, but it was not able to maintain the new levels.

On Wednesday, the price plunged sharply below $0.86. On Thursday, the bears pushed the price towards the 20-day moving average ($0.73) but the long tail of the candlestick showed solid buying below that level. 

If the resistance level of $0.94 is breached, bulls may try to push through it. The ADA/USDT could rise to $1.02, and then to $1.17 if the resistance level is breached.

In contrast, if price breaks down below 20-day SMA and turns downward, then it may be a sign that breakout above $0.86 could have been a trap. It is possible that the pair will then fall to its 50-day SMA (currently $0.66).

Related: Bitcoin due ‘massive short squeeze’ as BTC dominance bounces to 62%

On the 4-hour charts, the moving averages appear to be on the cusp of a crossover in the opposite direction. This indicates a potential comeback from the bears. The 20-SMA is likely to be the first place where recovery attempts will face selling.

The pair may fall to $0.75, and then to $0.70 if the price moves down. The longer it takes for the trend to resume, the deeper the decline.

The price will have to rise above the SMA 20 to put buyers back in the driving seat. The pair may rise as high as $0.90, and then to $0.94.

The article is not intended to provide investment advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.