ADA is one of the cryptocurrencies that has been least affected by the red tide that the market has experienced. Could this be a good sign for what comes next? To find out, here he performed an analysis and forecast of Cardano.
Cardano Technical Analysis: Monthly Chart
At the time of writing ADA is trading at $ 1.47, accumulating a loss of 2.26% in the last 24 hours and 11.67% in the last 7 days.
When we look at the monthly price chart, we notice that the months of turbulence and losses that we have been experiencing in the crypto market are totally overshadowed by the incredible upward force of previous months.
The current month is developing a bearish candle, and so far it seems to be signifying a simple retracement before continuing to rise, a view that remains as long as the support at $ 1.19 is not crossed.
When plotting the Fibonacci tool, we see that Cardano stopped at the 61.8% area, a level that is generally reached to make a healthy retracement, and subsequently to start a new momentum. This same tool sets us a target of $ 3.41, in case we really see a resumption of the trend soon.
But for this to happen we should first wait for some confirmation signals, which we should look for in smaller time frames, which we will analyze next.
Monthly price chart of ADA vs USDT. Source: TradingView.
When performing an analysis of the time frame of the Cardano price chart, we observe a clear exhaustion of the bears after reaching the support near $ 1.00, a level that seems to be signifying the bottom of the retracement.
The behavior of the last weeks still does not confirm that the trend is really being resumed. However, the continuous higher and higher highs speak of probabilities in favor of buyers.
Weekly price chart of ADA vs USDT. Source: TradingView.
Key levels to watch
Finally, let’s do an analysis of the Cardano price daily chart to identify the key levels we should be watching for in the near term.
In this graph the picture is quite clear. The price is resting in a consolidation with support at $ 1.32 and resistance at $ 1.80. The break of either end will herald the beginning of a broader move below.
Escaping through the bottom would lead to sales up to probably $ 1.07. The big pushback that we previously saw at that level can exert good pressure to slow down sales.
Exceeding $ 1.80 would mean the resumption of the trend in the medium and long term, which would put ADA in search of new all-time highs. Resistance that could cause a bit of trouble this way is at $ 2.30.
Analysis of the daily chart of the price of Cardano. Source: TradingView.
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