Sunday, January 23, 2022
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By Brian Bollinger
Published 10 mins ago Updated 10 mins ago

The Cardano coin investors experienced a significant retracement indicating a total loss of around 60% when the coin plummeted to the $1.2 mark. After spending a decent time at this support, the coin hints at recovery for its investors. Moreover, the founder Charles Hoskinson mentioned today that more than a dozen would-be launching on Cardano by the end of Q1. 

Key technical element to ponder

  • The ADA coin bulls regained the 20-day EAM support
  • The intraday trading volume in the ADA coin is $1.84 Billion, indicating a 0.84% loss.

Cardano Price Analysis: ADA Price Rally Reclaiming Crucial Resistance Of $1.5 Source-Tradingview

The last time we covered an article on Cardano, the rapid sell-off on December 4th retested the support level of $1.2. Though the price showed a significant recovery on the same day, the following trading actively led the price to the bottom support again.

The coin price retested the $1.2 mark multiple times for nearly two weeks to check for sufficient support. From December 21st, the pair started rising again and is trying to recapture the $1.5 resistance.

The ADA price trading below the 50, 100, and 200 EMA indicates a bearish trend. However, the recent pump has crossed above the dynamic resistance of 20 EMA and flipped into potential support.

The Relative Strength Index(54) moves above the neutral level(50), indicating a positive outlook for this coin.

ADA coin 4-hour Time Frame Chart

Cardano Price Analysis: ADA Price Rally Reclaiming Crucial Resistance Of $1.5 Source-Tradingview

The recovery phase in ADA coin has formed a cup and handle pattern in the 4-hr time frame chart. On December 27th, the price gave a strong breakout from the $1.5 neckline, with a good volume pump. The pair is still trying to hold above the level, providing a long entry opportunity for traders. 

The important levels for the coin on the upside are at $1.61, followed by the $1.71. And, on the lower side, the support levels are at $1.5 and $1.38.

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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