Cardano Price Analysis: ADA/USD set to break past $1.5 soon

Cryptopolitan 4 months ago Report
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TL;DR Breakdown

  • Cardano price analysis is bullish today.
  • ADA/USD retested $1.30 support overnight.
  • ADA/USD is currently trading at $1.23.

Today’s price action for Cardano is bearish, with the $1.30 support reversing the market once again overnight. Late today, ADA/USD is expected to test the $1.38 resistance once more in preparation for perhaps a larger move higher in the medium-term.

The ADA/USD pair tested last night’s low of $1.30 and must hold above this level to avoid a further move lower. Cardano will need to break and hold above $1.38 resistance to make larger gains, expecting the market to continue higher from here.

The MACD indicator is currently flatlining, indicating no clear bias to either the buy or sell. The RSI indicator has slipped into overbought territory, suggesting that ADA/USD may be due for a minor correction lower after it moves higher.

Due to this morning’s positive price action within Cardano, further gains are expected soon, with $1.50 resistance likely later today. Support should continue to consolidate around $1.30-$1.25 levels overnight, before another move higher by ADA/USD takes it back above $1.38 – possibly reaching as high as $1.60 during its next bullish cycle.

The 50% Fibonacci retracement level drawn from the corrective phase September 7th low to November 18th high suggests that Cardano may have been oversold in recent weeks, with ADA/USD currently trading around the 38.2% level on the way up from $1.04 lows – indicating that further gains for this cryptocurrency are imminent in the short-term.

On the daily timeframe, ADA/USD looks set to test new daily close above $1.30 would see the ADA/USD pair head towards testing December 24th’s high once again, with potential gains extending beyond $2 if all goes to plan for this cryptocurrency.

ADA/USD 4-hour chart: ADA looks to break $1.38 resistance?

On the 4-hour chart, the Cardano price is moving higher once again, most likely to test $1.38 resistance.

 ADA/USD set to break past $1.5 soon 1ADA/USD 4-hour chart. Source: TradingView

After declining by almost 20% last week, Cardano’s price action has remained steady for the past few days. On December 30th, support at $1.30 was established, with several retests since then. Look, the 4-hour chart shows that a break above $1.38 was enough to trigger a bullish move towards the December 24th high of $1.44, where it had faced selling pressure and turned lower once more.

In addition, resistance was discovered at $1.38 soon after, retested since. As a result, ADA/USD has established a consolidation range; when broken, it will show where the market is going next.

Cardano’s price reversed from the $1.30 support for the second time on Wednesday, implying that bulls will drive the market up. However, whether ADA/USD can rise above $1.38 is yet to be seen.

Cardano Price Analysis: Conclusion 

The price of Cardano is currently in a positive trend, with more upside to come over the next 24 hours after another test of the $1.3 support reversed the market. ADA/USD may now be poised to breach the $1.38 barrier and reclaim last week’s loss.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Original Source: https://www.cryptopolitan.com/cardano-price-analysis-2021-01-06/

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