- Cardano price action closed Sunday’s candlestick at a 10-month low, retreating to March 16, 2021 levels.
- The $1.00 value area remains under threat.
- Bears may attempt to push Cardano over the edge and into sub-$1.00 levels.
Cardano price has stubbornly held onto the $1.00 value area as its primary support. ADA has tested the $1.00 level eight out of the past ten trading days.
Cardano price may be ready for its bullish break above $1.00
Cardano price is positioned for a significant bullish breakout if it can achieve a daily close above the Tenkan-Sen at $1.08. ADA has spent the past twelve consecutive days with daily candlestick closes below the Tenkan-Sen. This prolonged constriction against the critical 50% Fibonacci retracement at $1.00 has generated substantial accumulation, which now looks poised to begin another leg up.
Bulls should have a reasonably easy time moving Cardano towards the $1.30 zone. $1.30 contains the 38.2% Fibonacci retracement, the bottom of the Cloud (Senkou Span A), the Kijun-Sen, and the 2022 Volume Point of Control. The oscillators support a breakout to that price range.
The Relative Strength Index remains in bull market conditions and tests the final oversold level at 40. The Relative Strength Index has been at the 40 level for 10 days, without any clear sign of a move lower. Additionally, the Composite Index has crossed above both of its moving averages, generating a bullish signal and lending strength to any breakout higher on the candlestick chart.
ADA/USD Daily Ichimoku Kinko Hyo Chart
However, downside risks remain. Consolidation after a trending move is often a pause before continuing the prior trend – which was bearish. If the Relative Strength Index moves lower and hits 30, the RSI converts into a bear market setup. In that scenario, the Composite Index will have crossed back below its moving averages, triggering very bearish sentiment. Finally, the Optex Bands would likely begin the move out of neutral and into oversold. A retest of the 2022 lows near $0.91 for Cardano price would be likely.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms
Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.
Litecoin poised for double-digit decline after breaking ascending trendline
Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC
21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
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.