ADA Bulls Step In, Is $1 Cardano Next?

Note:

Strong gains are usually followed by steep declines. 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? 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. 

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.

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%

Moving averages on 4-hour chart are about to cross in a bearish direction, signaling a possible comeback by bears. Selling at the 20 SMA will likely be the biggest obstacle to any recovery attempt.

Depending on the direction of the trend, the pair might fall as low as $0.75 or even $0.70. 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.

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.