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Technical Analysis for ADAUSD for 21st October 2021

ADA/USDT Prints a Double-Bar Bullish Reversal Pattern, Cardano Prices May Recover Above $2.3

The Cardano ecosystem continues to develop a few weeks after Goguen. There is now more funding for DeFi and more protocols from Project Catalyst.

Past Performance of Cardano

After a brief period of hesitation, Cardano buyers are flowing back. 

There is a high-volume bull bar in the daily chart, reversing losses of early this week. 

Out of this revival, the ADA price is up six percent on the last trading day buoyed by higher participation.

What to Expect of Cardano

The dip from early September may offer an opportunity for optimistic traders to load the dips. 

With the double-bar bullish reversal pattern formation, buyers may drive ADA/USDT prices back above $2.3 in buy trend resumption. 

However, if there is a dump across the board and ADA bulls stumble, losses below $2 may nullify the uptrend.

Cardano Technical Analysis

As per the Cardano candlestick arrangement in the daily chart, buyers appear to be in the driving seat. 

Thus far, ADA/USDT prices are capped within a $0.3 zone with identifiable support and resistance levels at $2 and $2.3, respectively. 

Despite the upbeat buyers and the double-bar bullish reversal pattern, losses below $2 will cancel buyers. 

On the flip side, if ADA buyers build on October 20 gains, every low may be a loading point for traders targeting $2.3. 

Afterward, further gains above the resistance level—turned support—may see ADA/USDT prices float back to $3 in continuation of the early Q3 2021 bull trend.

Resistance level to watch: $2.3

Support level to watch: $2

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

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