- 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. 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
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
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.