January 26, 2021

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Cardano price prediction – Long-covering to trigger more pain in ADA/USD

4 min read

  • Cardano price prediction has still not come out of the woods
  • ADA/USD challenging upper resistance at $0.1403 as selling pressure mounts
  • Cardano still in the bullish uptrend on the daily charts
Cardano price prediction – Long-covering to trigger more pain in ADA/USD 1
Cryptocurrency heat map by Coin360

Cardano price follows broader market – Profit booking can trigger selling

The ADA/USD pair is still very much engrossed in bearish Cardano price prediction. The diverging wedge between the price action and the volume is worrisome. The numerous signals cast a dark cloud over Cardano’s price prediction, signalling that a bearish reversal is on the cards. Sellers can intensify pressure and push the pair near the bottom of the Bollinger Bands

Another aggressive round of selling can push the pair towards the day’s low of $0.1314. However, bulls have started emerging on the scene as the pair has printed fresh new green candles, indicating that long-term bullish Cardano price prediction is still in play. On the other hand, the price rise can trigger long-covering by the traders looking to protect their investments and book profits.

Cardano price movement in the last 24 hours – Altseason goes in stagnation mode

The broader altcoin decline hit the ADA/USD and touched a $0.1194 low taking it dangerously close to the 20-day EMA. However, the pair was quick to repair as bulls initiated buying on lower levels. Whether or not the buying turns into accumulation and then into a bullish Cardano price prediction remains to be seen.

On the hourly timeframe, the buying momentum is weakening. The bullish wave has been preventing lower lows but is unable to close the pair above the crucial resistance level at $0.155. The price is trading near the middle of the contracting Bollinger Bands, where the 9-day EMA and SMA are staging a probable crossover. For the past two days, bears have maintained selling pressure at higher levels and damaged any minor bull rallies.

The declining volumes and a significant bearish divergence with price action can trigger another bearish wave. The upward Cardano price prediction must gain pace to touch $0.155 to approach the 55-day SMA next. The multi-week high near $0.1830 is still a far-fetched target on the hourly charts.

ADA/USD 4-hour chart – 20-day EMA holds the key

Cardano price prediction – Long-covering to trigger more pain in ADA/USD 2
Cardano price chart by TradingView

Technical indicators are trading in the neutral zone on the hourly charts. The daily charts are a different story, though, where they are still bullish. However, the 4-hour chart is getting interesting as the pair consolidates with higher highs. The RSI is at 46, meaning there is enough room on the upside. The MACD reading is approaching the crossover stage and can participate in the bull run.

However, any extended bearish pressure can bring the pair under the 20-day EMA, where the price can plunge towards the $0.1142 level. Bulls must maintain high volumes and liquidity to create momentum sufficient enough so that the ADA/USD pair can close above the $0.155 level. Bulls must consolidate above $0.1487 to prepare momentum for the next move higher.

Cardano undertook massive consolidation near $0.11, which ultimately contributed towards its rise to the $0.1830 level. The extremely explosive move upwards meant that correction was just around the corner. The bearish symmetrical triangle near the upper resistance at $0.19 indicated that the decline was as fierce as the rise. Any bullish Cardano price prediction must break the bearish symmetrical triangle with suitable momentum to post fresh new highs.

Cardano price prediction conclusion – Expect persistent selling at higher resistances

The first significant resistance remains at the $0.170 level, and the point also marks the 23.6 percent Fibonacci retracement of the recent uptrend. Bears will start building the selling action near the $0.1650 pivot point. The 4-hour chart shows that the pair is printing higher lows – a short-term bullish signal on the hourly timeframes.

The Cardano price prediction can turn bullish once the price approaches a $0.1762 swing high. A confident breakout beyond the $0.1800 mark will mean that the pair is set to rise towards $01920 resistance levels. The bearish indicators have cooled down, and bearish divergence can form once again on the hourly scales.

The long red wicks mean that the sellers have penetrated below the support regions. The next round of selling can turn aggressive as it will be driven by a take-profit trend, which can intensify if the broader market enters sell-off mode. If BTC/USD starts posting recovery, altcoins will follow suit.

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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