Technical Analysis for ADAUSD for 3rd March 2022
Cardano Pulls Back, ADA Bulls Unable to Break $1
Past Performance of ADA
Despite positive developments in the tail-end of February 2022, sellers are still in control, deflating bullish attempts. Notably, ADAUSDT is within a bear breakout pattern. Bulls are yet to close above the $1 psychological round number, acting as a strong resistance line. Provided the ADAUSDT setup remains as it is, bears are in charge even with the bullish engulfing bar of February 28 defining the short-term trend.
Cardano Technical Analysis
Bulls appear exhausted reading from the ADAUSDT candlestick formation in the daily chart. There has been no solid confirmation of the February 28 bullish engulfing bar to signal buyers. This development tilts ADA back to bearish territory. Although concrete fundamental factors pump ADA as its ecosystem matures, a high volume close above the $1 resistance line would cancel bear pressure as bulls flow back in confirmation of the February 28 bull bar. Therefore, based on this formation, traders may wait for a confirming breakout above $1 before committing and targeting $1.20 and $1.60 in the medium term. A retest of $1 and a dip towards $0.84 may deflate the upside pressure, triggering a sell-off in confirmation of sellers of mid-February 2022.
What to Expect of ADA
Cardano's ecosystem is being built as its DeFi TVL expands. Nonetheless, ADAUSDT technical factors support bears at spot rates despite the revival from late February 2022. Technically, ADA is within a bearish breakout pattern below $1.
Resistance level to watch: $1
Support level to watch: $0.84
Disclaimer: Opinions expressed are not investment advice. Do your research.
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