- Cardano price action is attempting to push above the monthly pivot.
- The 55-day SMA is keeping bulls' price action in ADA capped.
- With a clear bounce off the red descending trend line, bulls have plenty of volume to break the 55-day SMA, paving the way for $2.90.
Cardano (ADA) price saw some choppy price action this week. The turn came on Wednesday with bulls entering at $2.01, a level that showed its importance already in September. Bulls are now attacking the 55-day Simple Moving Average (SMA) around $2.45, which is putting a price cap on ADA for the moment.
ADA price bulls need to break $2.45 to have a free ride toward $2.90
Cardano price offered a solid entry on Wednesday at $2.01. That level already provided plenty of support back in September and did seem to be up for the chore again this month. Price ranged higher, attempting to break above the monthly pivot. But the 55-day SMA at $2.45 capped further price action in ADA.
ADA bulls have added more volume and fresh buyers to the rally, bouncing off the red descending trend line today. Bulls are now trying to regain control of the monthly pivot and with a possible second attack on the 55-day SMA just above there. Bulls are helped with the favorable tailwind of global markets.
ADA/USD daily chart
When bulls in Cardano price action can push beyond the 55-day SMA at $2.45, expect price action to shoot up further with a price target at $2.90. On that level, there is the double top from September 11 and the monthly R1 resistance level forming a barrier and profit-taking area for the bulls.
When buyers fail to break the 55-day SMA in their second attempt, expect a fade in the Cardano price action, with a dip back toward the red descending trend line and $2.01 flat line. A quick spike lower is possible as most bulls will have their stops placed between $2 and $1.89. Expect the 200-day SMA to be near $1.70 to stop any further continuation to the downside in the short term.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.