Cardano Price Analysis: 22 March
Cardano formed a range between $0.98 and $1.47, after its early February surge from $0.35 to $1.5. In the long-term, this consolidation will give ADA the time it needs to gather steam for its next move upward. The range’s...
Cardano formed a range between $0.98 and $1.47, after its early February surge from $0.35 to $1.5. In the long-term, this consolidation will give ADA the time it needs to gather steam for its next move upward. The range’s lower boundary can be used to set bids, while the mid-point of the range provides an indication of which way the momentum is headed.
In other news, Charles Hoskinson fought off FUD about the Cardano blockchain being a “ghost chain” by publishing a map of the Cardano ecosystem.
Cardano 12-hour chart
At the time of writing, ADA was trading at $1.17, just beneath the mid-point of the range at $1.2. The time period ADA has traded within this range numbers close to 25 days, making it significant on the 12-hour charts.
The long-term outlook for ADA remains bullish – range formation after a breakout can be accumulation before the next leg up. The market cap for ADA is at $37 billion, and another leg up would add billions more to this number. Yet, it can not be ruled out.
A conservative trading strategy regarding ADA would be to attempt to build a position in and around the $1 mark for ADA.
Reasoning
On the 12-hour chart, the OBV has continually risen since late November. It began to see a significant surge in late January and early February when it broke out past $0.36. The selling volume since hitting $1.47 has not been noticeable in the backdrop of buying volume- showing that sellers were unlikely to force prices beneath $1, $0.9, and $0.8 levels.
The RSI was at neutral 50 and had just sunk beneath the $1.2 mark, and this showed that the next week or two could see ADA be driven lower toward the range lows at $1.
Levels to look out for are the resistance at $1.47, the mid-point of the range at $1.2, and support in the $0.98-$1.02 area.
The range lows are an opportunity to accumulate ADA with the expectation of visiting range highs, which is a near 50% move. A stop-loss can be set at $0.9, with a more conservative stop-loss at $0.8, the next level of strong support.
Conclusion
Cardano has held steady above the $1 mark, and a revisit to this psychological level could be a good opportunity to accumulate more ADA.
Having studied Chemical Engineering, Akashnath's focus is on the UK and Indian markets and especially crypto assets. He is devoted to technical analysis and is always on the lookout for investment opportunities.
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