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.
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