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Technical Analysis for ADAUSD for 17th February 2022

Cardano Finding Strength after a 67% Dip, ADA Capped Below $1.20

Cardano posts more transactions than Ethereum and Bitcoin, according to trackers. The trend would likely continue as more DeFi and NFT dApps launch on the peer-reviewed Proof-of-Stake network.

Past Performance of ADA

Cardano sellers completely reversed gains of early H2 2021 as per the candlestick arrangement of the ADAUSDT visible in the daily chart. At spot rates, ADA prices are bouncing from multi-month lows at remained tethered to $1—a psychological support level. Technically, the rejection of lower lows at spot rates signal strength, a net positive for buyers. Still, ADA prices must break above strong liquidation levels in the immediate term for buyers to take complete control.

Cardano Technical Analysis

Overall, buyers stand a chance as Cardano's ecosystem takes shape. However, the ADAUSDT price is capped within a $0.20 zone with identifiable support and resistance at around $1 and $1.20, respectively. While risk-off traders may double down on dips, aligning their positions with the three-bar bullish formation pattern printed from February 13 to 15, clear loading opportunities exist above $1.20. A close above $1.20 at the back of increasing trading volumes could see ADA race to $1.50. Conversely, reversal of recent gains with rising trading volumes below the support zone at $1 nullifies the bullish outlook.

What to Expect of ADA

Cardano prices are stable, bouncing from $1. ADA could expand as more dApps deploy from the blockchain in the days ahead, drawing demand for the coin.

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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