ADA Bulls Step In, Is $1 Cardano Next?

The key point is:

Strong gains are usually followed by steep declines. This is exactly what happened to several altcoins and Cardano.ADAThis is also true. 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? To find out, let’s look at the charts.

Cardano price prediction

ADA broke the $0.86 resistance level on Monday. However, the bulls were unable to sustain higher 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. 

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).

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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 a barrier to recovery efforts.

The pair may fall to $0.75, and then to $0.70 if the price moves down. The greater the depth of the drop, the longer the new uptrend will take to start.

The price will need to be 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.