TL;DR Breakdown
- Cardano price expected to observe sideways movement before bullish breakout
- The closest support level lies at $0.3500
- ADA faces resistance in crossing above the $0.3750 mark
Cardano price has risen to the $0.3500 mark but faces resistance in leaving the mark. As such, ADA has been trading close to the level with sharp movement in either direction being followed by a correction back to the level.
The broader cryptocurrency market observes mixed sentiment as assets are divided between bullish and bearish trends. This can be seen by observing the price actions of the two largest cryptocurrencies, Bitcoin and Ethereum that record a loss of 1.29 percent and a gain of 7.61 percent, respectively.
Cardano price overview: Cardano price across the last ten days
After having a slow start to 2021, the Cardano price found bullish support as the buyers caused the price to rise to the $0.3500 level before stopping. The price observed a correction at the level and declined to the $0.2500 support level before stabilizing. However, the price could not climb above the $0.3500 mark until January 16.
The price climbed to the $0.3800 level but failed to hold the level as increasing bearish momentum caused the price to decline to the $0.300 mark. Today the rice has recovered above the $0.3500 mark but faces strong resistance in climbing above the level.
Technical indicators
Across the technical indicators, the MACD shows declining bullish momentum as the price continues to consolidate at the $0.3500 mark. The two EMAs are converging, and unless ADA closes the day above the $0.360 mark, the indicator would suggest a bearish turnover.
The RSI is neutral and hangs close to the 50.00 mark suggesting low momentum on either side. The indicator is currently moving downwards, suggesting an increasing bearish pressure for ADA.
The Bollinger bands are currently narrow but show further convergence as the price returns to the indicator’s mean line.
Overall, the four-hour technical analysis issues a buy signal as 14 of the 26 major technical indicators support a bullish trend across the short-term charts. On the other hand, only three indicators are issuing a sell signal suggesting low bearish pressure. The remaining nine indicators remain neutral, not supporting either side.
The 24-hour technical analysis accentuates this sentiment as 16 of the 26 technical indicators are issuing buy signals suggesting a bullish movement. On the other hand, only one indicator issues a sell signal suggesting little to no bearish pressure across the mid-term charts. Meanwhile, nine indicators remain neutral.
What to expect from Cardano price?
Traders should expect Cardano price to observe sideways movement at the current level before a breakout to the $0.400 mark. If ADA is able to establish a foothold above the $0.37500 mark, Cardano price may break above the $0.400 mark. However, ADA is expected to consolidate at the current level for a while.
Conversely, if Cardano price falls below the $0.350 mark, ADA may retrace to the $0.330 support level. Further downwards movement may mean a decline to the $0.3000 mark.
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.
