Cardano Price Prediction: ADA set for 20% gains
|- Cardano bulls enter again on the dip below the S1 support from January.
- RSI slowly but surely grinding higher towards mid-50 levels.
- ADA set for a pop higher towards $1.26.
Cardano (ADA) price action grinded lower and tested – towards possibly making a break below – the orange support line at $1.00. Bulls, however, did a fantastic job of supporting the level, and US equities have started to fall in line, also making more gains. Now ADA bulls are set to start taking out some previous highs for the week, and traders can expect a pop higher towards $1.20 to test the new monthly pivot before hitting $1.26 as a short-term price target for this week.
ADA bulls are taking control with the start of a new month
Cardano price has been in a rough patch these past few days as the danger looms of a break below $1.00. Yet, instead, bulls have bought each dip, resulting in a squeeze to the upside, with lower highs since mid-January. A grind higher towards 50 on, the Relative Strength Index (RSI), however, signals the presence of bulls and optimism for more upside to come.
ADA price will see a further uplift as US equities probably book another good day like yesterday and look to start the new month on a better note than it ended January, which suffered overall net losses for the month. Expect this renewed risk-on sentiment to push ADA price towards $1.20 in the first leg, testing the monthly pivot for February assuming it holds any relevance. The ultimate profit level for this week, however, will be $1.26, where the 55-day Simple Moving Average (SMA) comes in as a cap, and which has already been proven in the past, both on December 27 and November 11.
ADA/USD daily chart
Although geopolitics are fading into the background, the recent fade in the dollar could quickly shift back and see dollar strength weighing on the valuation of Cardano coins. With that, the price could be set to push back towards $1.00 and break again below it, looking for bulls to save the day, yet again. If bulls forfeit their obligations, the road might be open towards the monthly S1 at $0.7
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.