Cardano Price Prediction: Why ADA is looking good for a rally
Altcoins got off on the wrong foot on Monday after Bitcoin continued to shed value below $43K. The…
Altcoins got off on the wrong foot on Monday after Bitcoin continued to shed value below $43K. The world’s seventh-largest digital asset, Cardano, was no exception to the broader market trend. However, ADA had touched a safe zone on the lesser time frame – a region that has not been breached for a year. With the RSI also trading at oversold levels, buyers were expected to lift ADA from the doldrums and trigger an upwards run. At the time of writing, ADA traded at $1.03, down by 2.2% over the last 24 hours.
Cardano 4-hour Chart
Source: TradingViewCryptocurrencies have presented several “buy the dip” moments of late, following Bitcoin’s flash crash in January. Cardano’s buy opportunity has come to light each time its price has traded between $1.02-$0.92. The region has been a haven for bullish investors, triggering multiple bull runs over the past year. More specifically, ADA’s upwards run could come to light right after the price tags of $1.008 support.
A bullish rebound would set a fresh high in motion, although it’s important to note that a larger downtrend was in play. ADA has just formed a single higher high since November 2021 as bears maintained a firm grip on the market. Hence, the next lower high could be formed between the lower limit of a supply zone at $1.20 and the 61.8% Fibonacci level. A move past $1.26 could even disrupt the downtrend and lead the way to 27 December’s swing high of $1.60.
The bullish outcome was supported by extreme readings on the 4-hour metrics. As per the RSI, ADA has traded below its perceived intrinsic value for the last two days. Furthermore, a bullish crossover was developing on the MACD, giving way to a potential buy signal.
However, the bullish narrative would be delayed if ADA succumbs to broader market pressure and slips below $1.008. The move would force bulls to look for deeper support levels at $0.95,$0.94, or even $0.925.
Conclusion
Cardano has tagged an important support region and looks forward to its next rally. With buy signals on the indicators, ADA’s near-term outlook was certainly looking favorable.
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