Technical Analysis for ADAUSD for 20th February 2023
Cardano Slows Down after 70% Gain, Support at $0.38
Past Performance of ADA
Cardano prices are up 16% from last week's low and over 70% from Q4 2022 lows. Even though the primary trend is upward, the consolidation of the past few days within the February 15 bar can be a concern. The immediate resistance level is $0.42, while the support is $0.38. For the uptrend to resume, buyers must break above $0.42 with rising volumes, paving the way for more gains in the short term.
Cardano Technical Analysis
Cardano is bullish, as mentioned earlier. However, ADA prices are inside the February 15 and 16 trade range. The February 16 bar has higher trading volumes and reversed losses of the February 15. Since ADA prices are inside this bar's range, traders must have a clear definition before committing. If bears flow back, confirming losses of February 16, ADA may drop to $0.35 in a welcomed retracement. The uptrend remains valid as long as prices are above December lows at $0.23. Conversely, if there is demand today, ADA may roar above $0.42 and November highs, setting a new trend that may see it retest $0.52, or September 2022 highs.
What to Expect from ADA
ADA holders are optimistic after the performance of the better part of February. Even so, trend definition in the short term is critical. That means Cardano bulls must clear $0.42 if ADA has bottomed up.
Resistance level to watch: $0.42
Support level to watch: $0.38
Disclaimer: Opinions expressed are not investment advice. Do your research.
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