Cardano Bulls Are Taking Over, Says Technical Analyst
ADA has outperforming the Crypto Market of late. Covered: Recent Price Action Charts (M,W,D), ADABTC What to Anticipate, Key Technical Levels & Indicators Used Last Week Cardano Had a Good Week, Shifting its Momentum to the Upside. Cardano (ADA)...
ADA has outperforming the Crypto Market of late.
Covered:
- Recent Price Action
- Charts (M,W,D), ADABTC
- What to Anticipate, Key Technical Levels & Indicators Used
Last Week Cardano Had a Good Week, Shifting its Momentum to the Upside.
Cardano (ADA) rallied 20% last week, picking up bullish momentum and reversing its downtrend on the daily chart.
1.30 remains to be a solid support level. This level was once its all-time high for years between 2018 and 2021.
What can we expect from ADA from here?
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ADA: Monthly 
The monthly chart of ADA shows that its uptrend is intact and the price is holding above 21EMA (Cyan).
The last time ADA hit 21EMA (Cyan) on the monthly chart was earlier last year. Notice that the previous top from 2018 around 1.31 is not acting as a support.
The momentum oscillator shows that both momentum lines are in the bullish zone (upper half) but the fast momentum line (Yellow) is below the slow momentum line (Red) meaning that the trend is more of a bullish chop.
The squeeze indicator shows no squeeze in development and its momentum is bullish but falling (Blue).
ADA: Weekly
The weekly chart of ADA shows that the trend is in a sideways chop with a slightly bearish undertone as the faster moving averages like 5EMA (Burgundy) and 8EMA (Yellow) are below the slower moving averages like 30MA (White) and 50MA (Salmon).
However, 5EMA and 8EMA are curling up and the price is testing 50MA.
The momentum oscillator shows that the fast momentum line (Yellow) is trying to cross over the slow momentum line (Red) and the midline.
The squeeze indicator shows that momentum is rising as the squeeze histogram switched from Red (Bearish & falling momentum) to Yellow (Bearish but rising momentum)
ADA: Daily
The daily chart shows a price channel that has the shape of a falling wedge.
Notice that the upper price channel line was tested twice so far. Once in November and once just today.
The daily trend is turning up and the price shot up above 50MA(Salmon) and now it is trying to find support above it.
The momentum oscillator shows that the momentum is bullish with the fast momentum line (Yellow) over the midline and the slow momentum line (Red). This is an ideal momentum structure for bulls.
The squeeze indicator shows that a low-compression squeeze has fired to the upside.
Look at the volume bar from yesterday that is about twice taller than adjacent volume bars around it.
This shows conviction by bulls who are driving up the price and now the daily momentum has turned bullish.
We’ll keep an eye on ADA for the next few days to weeks and see how it follows through.
Key Technical Levels
Support: 1.07
Support: 1.3
Resistance: 1.64
Resistance Zone: 1.93 – 2.15
Resistance: 2.33
Price Target 1: 3.1
Price Target 2: 3.65
Price Target 3: 4.35
Indicator Used: (Click Here)
- Not Financial Advice
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