Technical Analysis for ADAUSD for 13th January 2022
Cardano’s Double Bottom, ADA Likely to Retest $1.60
Cardano continues to develop with over 3k commits submitted on GitHub in the last week alone. At the same time, they have activated a performance-focused release in Cardano Node 1.33.0. Among other improvements, the network’s nodes become more memory efficient.
Past Performance of ADA
After cratering from August 2021 peaks and sinking to $1.10 in early January 2022, there are now encouraging flashes of strength in ADA. From the daily chart, there has been a confirmation of the double bar bullish pattern possibly marking the end of the bear run of the second half of H2 and subsequently signaling a shift to a short-term bullish trend.
Cardano Technical Analysis
ADA prices plunged over 65 percent from August 2021 highs, dropping to $1.10 as bears wreaked havoc. After four months of lower lows and a shift from strong bulls to bears in the second half of H2 2021, the tide is changing to boost Cardano bulls. From around $1.10 primary support, there is a bullish formation pattern following the printing of the double-bottom. A close above $1.60 would trigger more demand in a move that may see ADA more likely double to over $3. Based on this arrangement and confirmation of the buying pressure of early this week, aggressive traders may load the dips targeting $1.60 in the short term.
What to Expect of ADA
ADAUSDT candlestick arrangement may print a double bottom following the revival of early this week. Furthermore, sealing traders' positive outlook, there is a bullish divergence pattern. This combination seems to support buyers who are in the short-term targeting $1.60—the immediate resistance level.
Resistance level to watch: $1.60
Support level to watch: $1.20 and 1.10
Disclaimer: Opinions expressed are not investment advice. Do your research.
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