- Cardano price hit a curb after trying to break above the 55-day SMA.
- ADA price is giving away its gains this morning and is searching for support from which to bounce.
- Expect ADA prices to dip slightly lower towards $1.37 for a foothold.
Cardano (ADA) price has been on the right track these past few days, with a technical rally that saw bulls rejected by the 55-day Simple Moving Average (SMA) at $1.63, just a few ticks shy of the $1.68 significant historical level. ADA price gaps were lower this morning and looked to be pairing back most of the built-up gains from last week in search of support. Expect price action to dip further with support at $1.37 or $1.20.
Cardano bulls could undergo another 16% correction
Cardano price, together with most other cryptocurrencies, enjoyed the Christmas rally only to stall across the board yesterday evening. As markets are awakening after a long weekend of festivities, most indices are quoting in the red, and most cryptocurrencies are on the back foot, with the sentiment outlook for today rather grim. Expect Cardano price action to remain under pressure, searching for support throughout the day.
The first level to watch is the green ascending trend line that acted as support during the rally and break higher on December 23, and then continued providing support in the days that followed. It will be essential to see if it can do this again because a break below could see losses that mount to 16%. If that is the case, expect ADA to dip towards $1.20 and the monthly S1 support level which is likely to support price against further losses.
ADA/USD daily chart
If sentiment shifts to the upside, expect a retest of the 55-day SMA and, next, the historical $1.68 level,marked up on the chart. If bulls can make it through there, expect to see some choppy price action within a 20% profit range, as the monthly pivot, the 200-day SMA, and a historical resistance level all lie in that zone and could spark profit-taking with each test.
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
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.