ADA Soars 12% in a Week, What’s the Next Target?

After recording an all-time high at $3.10, Cardano entered into a correction that’s ongoing for 200 days so far. Meanwhile, bad news, such as delisting from the eToro exchange, has become a catalyst for further price retracement. Despite the rumors of burn mechanism rollout, there is no significant reaction.

Technical Analysis by Grizzly

The Daily Chart:

Source: TradingView

On the daily timeframe, ADA is trading in a descending channel (marked by yellow). During the downtrend, the price has not yet formed a higher high, and the red Ichimoku Cloud has been the main barrier. The first major challenge is to cross above the resistance at $1 (marked by blue), which pushes price into the cloud and can lead to a lot of volatility.

If Cardano breaks this area, the dynamic resistance at $1.2 could be the next challenge. The static support at $0.75 is also a place that the bulls have defended several times.

RSI-14d: Entered the bullish area and is testing the downtrend line.

The 4-Hour Chart:

Source: TradingVIew

On the 4-hour timeframe, the short-term uptrend, which was formed by creating higher highs and lows, was halted after hitting the EMA200. A MACD divergence also indicates a short-term correction. If it continues, the first support is at $0.85 and then $0.78. If the bulls fail to defend these levels, things will go bad from bad to worse.

Related:  Bitcoin Supply In Profit Drops To 55%, Is The Bottom Here Yet?

Short-term resistances: $0.9 & $1

Short-term supports: $0.85 & $0.78


Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.

Download MAXBIT Android App, Your best source of all crypto news!

Google Play

Source link

Share this article: