ADA Bulls Step In, Is $1 Cardano Next?

Note:

Strong gains are usually followed by sharp drops. Cardano and several other altcoins have experienced sharp declines.ADAThis is also true. Pullbacks are usually used to shake out weak hands, before continuing the upward trend.

Is ADA about to top out or will the recent dip be a good opportunity for investors? We’ll analyze the charts and find out.

Cardano price prediction

ADA broke through the resistance of $0.86 on Monday but could not maintain the higher level.

Price plunged to below breakout level $0.86 on Wednesday. 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. 

Bulls are likely to try and challenge resistance at $0.94. The ADA/USDT could rise to $1.02, and then to $1.17 if the resistance level is breached.

If, on the other hand, the price reverses and falls below the SMA of 20 days, this suggests that the break above $0.86 was a possible bull 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. Selling at the 20 SMA will likely be met with resistance during recovery attempts.

If the price drops below the 20-SMA the pair might fall as low as $0.70 and eventually to $0.75. The greater the depth of the drop, the longer the new uptrend will take to start.

To regain control, buyers will need to push the price higher than the 20-SMA. The pair may rise as high as $0.90, and then to $0.94.

This article contains no investment recommendations or advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.