TL;DR Breakdown
- Cardano price expected to rise to $1.00 resistance before breaking out to the $1.125 mark.
- The closest support level lies at $0.850
- ADA faces resistance in crossing above the $0.9500 mark,
Cardano price is observing sharp bullish activity as the price breaks above the $0.940 mark. Across the last seven days, ADA has recorded an increase of almost 115 percent. However, the movement has slowed down in recent hours as the price faces strong resistance at the $0.9500 mark.
After spending most of January consolidating below the $0.400 mark, Cardano price observed a breakout in early February. Although the price faced strong resistance in leaving the mark, ADA initiated a strong bullish rally as soon as it left the mark. The rally enabled Cardano price to rise from the $0.400 mark to the current trading price at $0.9500.
The broader cryptocurrency market also observes strong bullish activity across the last seven days as most major cryptocurrencies record double-digit gains across the period. These include Bitcoin, Ethereum, and Polkadot that record a 28.89, 11.9, and 27.17 percent increase, respectively.
Technical indicators
Across the technical indicators, the MACD is strongly bullish but suggests a declining bullish momentum as the price faces resistance at the $0.9500 mark. Both EMAs are rising with a steep gradient suggesting strong buyer activity in the momentum. The indicator will remain bullish until the price falls below the $0.8500 mark.
The RSI is overbought but shows retracement to the 70.00 mark suggesting strong bearish pressure at the $0.9500 mark. The indicator is currently rising again, trading near the 70.00 mark as ADA recovers to retest the $0.9500 resistance. Currently, the signal issues a sell signal, but the signal is not strong as the indicator remains below the 80.00 mark.
The Bollinger bands are currently wide and show further expansion as the price consistently trades near the upper limit of the indicator. The indicator suggests high price volatility for ADA in the short term.
Overall, the four-hour technical analysis issues a strong buy signal, with 16 of the 26 major technical indicators issuing support for a positive price movement. On the other hand, only three indicators suggest a downwards price movement. Meanwhile, seven indicators remain neutral, suggesting no support for either side.
The 24-hour technical analysis accentuates this sentiment as the analysis shows 17 indicators in support of a bullish breakout compared to only four against it. Meanwhile, four indicators remain sitting on the fence, issuing no signals for either side.
What to expect from Cardano price?
Traders should expect Cardano price to rise to the $1.00 mark as the bulls continue in their domination of the markets. The positive technical indicators and the rising trade volume suggests a bullish breakout for ADA, sending it to the $1.125 mark.
Conversely, if Cardano price falls below the $0.900 mark, ADA may fall back to the $0.850 mark with potential downwards movement to the $0.800 mark. However, that seems unlikely considering the bullish sentiment persisting in the markets.
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.
