Cardano (ADA) Inside A Stagnation Zone Above $2, Still Targets $2.40
Cardano (ADA) has been again into a rangebound stage that doesn’t look clear at all from a short-term perspective.
The price rallied early this week to hit a high around $2.37 and then strongly pulled back to consolidate below the 200-period simple moving average at the H4 chart, meaning that the crypto is hovering around a “line in the sand” zone.
Recent price action suggests that buyers had been quite active around the $1.95 neighborhood, and it seems like a breakout above the $2.15 level is on the cards at this stage.
ATHs On The Cards
Now, with the cycle concluded when ADA tested the highs at $2.37, bulls could be preparing the ground to skyrocket further and eventually gather momentum to duplicate a cycle.
From a technical point of view, the lows from October are a high-demand area for buyers, and it’s a solid zone where rebounds are likely to halt any attempt of sellers to take the reins of the price’s action.
That said, ADA should break above $2.37 to escalate positions and then run towards the Fibonacci expansion level of 100% at $2.50 to conclude the double cycle’s formation.
Shifting Towards A Pessimistic Outlook?
Beyond that area, the odds are even more favorable to the bulls, as Cardano’s coin could enter in a strong buyers territory that takes the price towards the $3 threshold.
Once ADA clears out that hurdle in the middle of the bull run, eyes will be on new all-time highs, probably targeting the $3.20 level as the first critical hurdle to overcome.
However, as the RSI indicator at the H4 chart keeps treading red waters, bears could dominate the scene in the short term. Eventually, we could see ADA plunging towards the $1.95 level in a first degree, followed by the demand zone of $1.80.
If the $1.80 level gives up and sellers take the reins, Cardano’s coin could be on its way to bolster the bearish price action and targeting towards $1.60, threatening the bullish outlook for the crypto in the near term.
This article was originally posted on FX Empire