Cardano Price Prediction: ADA positions itself for a 20% upswing
- Cardano price is teetering off a crucial support level at $1.20, anticipating a bullish move.
- An increase in buying pressure could trigger a 15% run-up for ADA.
- A nine-hour candlestick close below $1.14 will invalidate the bullish thesis.
Cardano price is glued to a crucial support level touched many times in the past, most recently on January 5. This barrier is significant and will determine the next course of action for ADA.
Cardano price eyes a higher high
Cardano price first set a swing low at $1.20 on December 3, 2021, and has since revisited it multiple times. From December 3 to December 20, ADA set up a bullish reversal pattern that resulted in a 32% uptrend in the next week.
The sell-off since then, however, has brought Cardano price back to retest the said level. A bounce from here is likely to kick-start another leg-up. The $1.38 ceiling will be the first hurdle ADA will face on its journey to $1.45.
Such a rally would constitute a 21% advance from $1.20. A good strategy would be for market participants to enter a long position at the retest of $1.20 and book profits at $1.38 and $1.45.
ADA/USDT 9-hour chart
While things are looking up for Cardano price, the bullish outlook depends very much on what happens at the $1.20 support floor. There is a chance ADA could merely sweep this barrier to collect liquidity. Cardano price needs to stay above $1.14 for the bullish thesis to remain intact. This is also where investors can place their stop-losses.
A nine-hour candlestick close below this area will invalidate the optimistic narrative and kick-start a descent to $1.05.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
