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Technical Analysis for ADAUSD for 5th January 2022

Cardano is Bullish on Paper, Buyers cannot Break $1.60

Recent GitHub information shows that Cardano is the most actively developed blockchain network, surpassing Ethereum, Polkadot, and Kusama.

Past Performance of ADA

The Cardano price is currently within a bullish breakout pattern following the late-December burst above the 20-day moving average. Despite ADA holders’ optimism, prices are again cooling off but trading above $1.20—the December 2021 lows.

Cardano Technical Analysis

ADAUSDT prices are within the December 22 and 23 bull bars, firm along the middle BB and printing higher highs relative to the lower BB. All these combine to support Cardano bulls, expecting more gains above December 2021 highs. Considering the development in the daily chart, there might be an opportunity for bulls to double down on dips as long as ADA prices float above $1.20. However, there might be clearer entries if Cardano bulls flow back to unwind losses above $1.60. Such a formation would quickly form the base for another leg up to $2—or better.

What to Expect of ADA

The Cardano ecosystem is developing. Traders are upbeat about what lies ahead. This is yet to spill over to price action, suggesting possible undervaluation. A close above $1.60 may ignite demand. On the reverse side, losses below $1.20 may compound Cardano’s losses.

Resistance level to watch: $1.60

Support level to watch: $1.20

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

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