ADA Bulls Step In, Is $1 Cardano Next?

Note:

Strong rises in price are often followed by steep drops. Cardano and several other altcoins have experienced sharp declines.ADA() is not an exception. Pullbacks are usually used to shake out weak hands, before continuing the upward trend.

Has ADA reached its near-term peak, or could the recent dip be a buying opportunity? We’ll analyze the charts and find out.

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. 

If the resistance level of $0.94 is breached, bulls may try to push through it. If this level is reached, the ADA/USDT pairing could reach $1.02 or even $1.17.

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. This pair may then plummet to the 50 day SMA ($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 greater the depth of the drop, the longer the new uptrend will take to start.

The price will have to rise above the SMA 20 to put buyers back in the driving seat. They could then see the pair rise from $0.90 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.