ADA TA: Cardano Pulling Me Back In

The smart contract protocol Cardano hasn’t been an easy project to hold onto in 2021. But it still has a lot going for it development-wise. What’s the outlook look like for 2022?

Covered:

Cardano (ADA) Looking To Finish This Year At Where it Was In The Spring
ADA’s Charts (M,W,D)
What To Anticipate Next

“Just When I Thought I Was Out Of The $1 Range, They (the Whales) Pulled Me Back In!”

It’s been another volatile year in the cryptoverse. It goes without saying it was a volatile year for Cardano (ticker symbol: ADA) as well.

But unlike many other cryptos, Cardano (ADA)’s price is back where it was 9 months ago in March. By looking at its weekly chart, it would become apparent that ADA is pretty much at where it was 6 months ago in June and 9 months ago in March.

In 2021 every time ADA broke out to the upside, it couldn’t sustain its footing above $2. It always eventually came back to its consolidation area between $1.2 and $1.3 — which is also a key support.

However, for those who were holding ADA from 2020 into 2021, it’s still a six-bagger (or about 600% gain) for those with the foresight to snag the Charles Hoskinson-led project ahead of 2020.

But that was then. What about the now?

RECOMMENDED: TOP FIVE CARDANO STORIES OF 2021

ADA TA: Monthly

ADA started 2021 with a firecracker off of its long, multi-year saucer bottom (rounding base), going from about $0.2 to $1.5 between January and February.

Getting through above $1.3 ($1.315 to be more precise) with momentum, however, was a battle as this price level was where it topped back in January of 2018. Previous tops are important because each of them acts as a psychological anchor point for its market participants.

ADA’s monthly trend is in an upswing with its moving averages stacked up. ADA is currently just above its 21EMA (Cyan). The Momentum oscillator shows that Fast (yellow) momentum is in the bullish zone but below Slow (red) momentum. The Ssqueeze indicator shows bullish but falling momentum (blue histogram).

ADA TA: Weekly

On its weekly chart, ADA has an important support level (Fibonacci retracement level 0.618) at 1.195 (let’s just say 1.2)

Combined with the previous all-time high at 1.315, they are likely to continue providing strong support. You can see that ADA is forming a big triangle. To the left of it is a small triangle which resulted in a break out to the upside.

However, this also brings a case of potential head & shoulders with the left shoulder and head formed. Its weekly trend is in a downtrend as moving averages are stacked up inversely.

The momentum oscillator points out that the momentum is to the downside with fast (yellow) momentum in the bearish zone below slow (red) momentum. The squeeze momentum also shows that the momentum is bearish.

Despite the bearish momentum, the key support (see chart) remains strong for now.

ADA TA: Daily

The daily chart shows a better picture than its weekly chart. Yes, this was in a downtrend but it is fighting to gain momentum and structure.

As you can see the moving averages on its daily are all sandwiched together creating a sideways chop which is what you want to see as a bull after seeing a downtrend. There are hurdles along the way but if it can get over 50MA (salmon) it has doesn’t have much resistance until 200MA (purple).

The momentum oscillator shows that fast (yellow) momentum is above the slow (red) momentum and the slow momentum line is rounding up which indicates the slow momentum is turning around.

The squeeze indicator shows a low-compression (black dot) forming with flat momentum histogram. It is evident that from the chart point of view that ADA needs to hold above its key support between $1.2 and $1.3.

It is doing exactly that so far and let’s see how this market unfolds in 2022.

Key Technical Levels