TL;DR Breakdown
- Cardano price expected to climb to $0.3500 by January 20.
- The nearest support level lies at $0.2750.
- ADA faces resistance in crossing the $0.3200 level.
Cardano price has been rejected by the $0.3200 level as the bullish momentum was stomped by the increasing bearish pressure. ADA has fallen below the $0.3000 level, with the price showing further downwards movement.
The broader cryptocurrency market sentiment is also bearish as most major cryptocurrencies record losses across the last 24-hours. Bitcoin has failed to cross above the $40,000 level and shows a ten percent fall across the last 24-hours. Similarly, Ethereum also shows a double-digit decline across the last 24-hours.
Cardano price overview: Cardano price across January
After starting the year with significantly low volatility, Cardano price initiated a strong bull rally, which enabled the price to rise from the lows of $0.1750. The bullish momentum carried ADA price to the $0.3300 level until bearish pressure caused the price action to stagnate. The bearish pressure rejected the trend and ADA fell below the $0.3200 level.
Subsequently, Cardano started declining, falling to the $0.2500 level before finding a strong support level. Today the bulls made another attempt at crossing above the $0.3100 level but failed to close above the level. The price has declined below the level showing further downwards movement.
Technical indicators
Across the technical indicators, the MACD shows declining bullish momentum in the markets as the two EMAs show convergence. The indicator is currently suggesting a bearish reversal; however, if ADA breaks above the $0.3200 level, the indicator will cancel the turnover and suggest increasing bullish pressure.
The RSI is trading close to the 60.00 level, suggesting that ADA still has room for upwards movement before price corrects. However, the relatively high position of the indicator suggests that ADA may not break above the $0.3200 mark in the short-term.
The Bollinger bands contradict this sentiment as the indicator remains wide and does not show any convergence. This suggests that ADA still has potential for upwards movement towards the $0.3500 level. However, the indicator may converge if the Cardano price does not break above the $0.3200 level by tomorrow.
Across the daily frames, 18 of the 28 major technical indicators issue a buy signal as the technical analysis issues a strong bullish signal. None of the technical indicators are issuing a sell signal, while 10 indicators remain neutral, not leaning towards either side.
This sentiment is shared by the 4-hour technical analysis as well that also issues a buy signal, albeit a bit weaker in strength as five indicators issue sell signals. However, the fourteen indicators issuing buy signals make the overall analysis suggest a bullish run in the short-term.
Traders should expect Cardano price to fall to the $0.2750 level by the next two days. The positive indicators and the increasing trade volume suggest that ADA may recover to the $0.300 level in the next two days, with ADA rising towards the $0.3500 mark.
However, if Cardano price falls below the $0.2750 level, ADA will fall to the $0.2500 level with potential for further downwards movement towards the $0.200 mark.
