Cardano Price Analysis: ADA/USD targets $2 next
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TL;DR Breakdown
- Cardano price analysis is bullish today.
- Cardano dropped another 10 percent yesterday.
- ADA/USD is currently trading at $1.3.
The Cardano price analysis is bullish presently since we observed the $1.40 support halt the market from declining any further. Since then, ADA/USD has consolidated, suggesting that a reversal may be on the way.
The ADA/USD pair dropped another 10% yesterday, as you can see. Yesterday’s close below the support trend line added to the sharp decline.
Cardano price analysis shows that ADA/USD is currently consolidating above $1.40 support. If this area breaks, the drop could continue towards the next support around$0.8650. That being said, if Cardano manages to hold this level, there are good chances it will turn into a bullish pattern later on, as indicated by our red horizontal support line and green resistance line, which has acted as strong momentum indicators for this trade in the past.
Since ADA/USD broke below the support trend line, the volume has been rising every day, signaling that traders are getting more aggressive to sell at lower levels. That coupled with momentum indicators pointing down indicates that ADA/USD will likely drop even further if this level breaks.
Both the 20 day EMA and the 100 day EMA show a bearish crossover, which suggests that ADA/USD will most likely drop further from this point. If the support trend line breaks, it will open up room for more losses.
The MACD indicator signal line just entered the bearish zone. This could be bad news if this support zone doesn’t hold because ADA/USD would drop to around $1.0950, which was last month’s high. On the other hand, if Cardano manages to hold its ground above $1.40, we expect bullish momentum to build up to attempt a break above the descending channel resistance line towards our initial target objective of around 200% projection of $2 or even higher.
ADA/USD is currently trading at $1.3 to relieve many traders who were afraid the price might drop below $1. Cardano could turn bullish if it breaks above $1.45. It will only happen if it consolidates for some time until an attempt to break up occurs or another support trend line doesn’t hold and drops further towards the next support level, around $0.8650.
ADA/USD 4-hour chart: ADA ready to regain yesterday’s loss?
On the 4-hour chart, we can still see the $1.40 support being maintained, which suggests that a reversal is likely later today.
After a more than week-long rally earlier in the month, Cardano’s price has reversed course in recent days. On December 27, a solid swing high was achieved at $1.60, with a rapid selloff following shortly after that.
The price of ADA/USD reached $1.44 early in the day. However, after a quick retest of the upside, another drop occurred late yesterday. ADA/USD has currently found support at $1.40, implying a full retreat of around 13 percent.
The Cardano price continued to consolidate sideways above the $1.40 support mark established overnight. The ADA/USD pair will likely test upside once again as soon as bulls retake control.
Cardano Price Analysis: Conclusion
We believe that Cardano’s price will continue to rise, and we suggest buying on dips. The Cardano price is presently up due to a bullish attitude toward the market. After another 10% drop yesterday, we expect a reversal today. As long as ADA/USD holds below $1.40, we can anticipate another surge Higher as soon as possible.
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.
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