This website uses cookies to ensure you get the best experience on our website

Technical Analysis for ADAUSD for 4th February 2022

Cardano in an Extended Consolidation, ADA Bulls Could Break Above $1.20

IOHK has implemented on-chain enhancements to improve the chain's scalability following inconveniencing congestion in the last week of January 2022.

Past Performance of ADA

Cardano prices are boxed within a narrow trade range as per the formation in the daily chart. Although traders are optimistic, sellers have the upper hand. A break below the $0.97 to $1 multi-month support level may see ADA tank to $0.70—or worse in the weeks ahead.

Cardano Technical Analysis

ADA is bearish at spot rates, down over 65 percent from all-time highs. Even though there is an encouraging accumulation in the daily chart, the failure of bulls to edge higher is a concern. Ideally, a close above the $1.20 resistance level may revive demand. Subsequently, ADA could inch higher to $1.50 in buy trend resumption. On the flip side, losses below $1 with high trading volumes may throw bulls into disarray as sellers set sight on $0.70 in continuation Q4 2021 bear trend.

What to Expect of ADA

Despite the sideways movement, ADA is bearish below $1.20. A high volume close above the recent consolidation would signal the presence of buyers. In that case, ADA may rise to $1.50, reversing Jan 21 and 22 losses.

Resistance level to watch: $1.20

Support level to watch: $1

Disclaimer: Opinions expressed are not investment advice. Do your research.

For more interesting tips and facts visit our Education Centre.

Have Questions? 

We're available 24/7 to help you. You can email us, or send us a message on WhatsApp, Telegram or Messenger!

Risk Disclosure: Trading cryptocurrencies or any other financial instrument involves a significant level of risk and may result in a total loss of your investment. You should consider carefully whether investing in Bitcoin or any other instrument offered by CryptoAltum is appropriate to your financial situation. CryptoAltum only accepts deposits in Cryptocurrencies. By trading with CryptoAltum you acknowledge your understanding of this risk disclosure and your agreement with the Terms and Conditions.

This website is not directed at any jurisdiction and is not intended for any use that would be contrary to local law or regulation.

CryptoAltum does not accept any clients under the age of 18. 
  • Copyright Techcraft Ltd (CryptoAltum) 2020