Technical Analysis for ADAUSD for 31st January 2022
Cardano Retesting a Multi-Month Support at $1, Bears in Control
The Cardano DeFi ecosystem is shaping up. According to trackers, in the second half of January, its total value locked (TVL) shot up from roughly $3 million to over $75 million.
Past Performance of ADA
ADAUSDT prices are within a tight trade range as per events in the daily chart. Notably, prices are weaving around the $1 psychological support line. Although this is bullish, it also indicates weaknesses since buyers are not back in the equation.
Cardano Technical Analysis
Cardano is bearish. ADA prices are retesting a crucial multi-month support level in the daily chart. Fundamentals might be overwhelmingly bullish for ADA, but this has failed to tame aggressive sellers. A sharp drop below January 2021 lows could easily see ADA prices tank to $0.70. Conversely, a close above $1.20 and the middle BB may be the foundation for a leg up to $1.50—or better in subsequent sessions.
What to Expect of ADA
Traders are bullish, but ADA prices are tethered close to crucial support levels. If broken, ADA may struggle to recover and easily dump to $0.70. Therefore, reflecting the platform's solid fundamentals, a high-volume close above $1.20 is needed to rejuvenate bulls.
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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