Note:
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.
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. Bears drove the price to the 20 day simple moving average (0.73) ($0.73), on Thursday. However, the longtail on the candlestick indicates solid purchasing at lower levels.
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. This pair may then plummet to the 50 day SMA ($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. The 20-SMA is likely to be the first place where recovery attempts will face selling.
If the price drops below the 20-SMA 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. They could then see the pair rise from $0.90 to $0.94.
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Source: cointelegraph.com
