Cardano (Ada) Rallies, Will ADA Reach the $0.056 Price Level?

Cardano (Ada) Rallies, Will ADA Reach the $0.056 Price Level?

Key Resistance levels: $0.06, $16, $180
Key Support Levels: $80, $60, $40

ADA/USD Long-term Trend: Bullish
Cardano has been consolidating at the bottom of the chart in December above $0.030 support level. Recently, on January 14, the bulls broke above the $0.040 price level and continued the upward movement. The upward movement is ongoing as the bulls break above the $0.045 price level. The bulls are likely to face resistance at the $0.046 price level.

That level has been defended by the bears. On the upside, a break above $0.046 resistance will propel ADA to a high of $.056. At that price level, ADA will be on the verge of coming out of the downtrend zone. Conversely, if the bulls fail to break above the $0.046 resistance, ADA will be compelled to a sideways move between $0.030 and $0.045.

ADA/USD - Daily Chart

Daily Chart Indicators Reading:
Cardano is currently trading in the overbought region of the daily stochastic. That is above 80% range of the indicator. This indicates that at the overbought region ADA may face selling pressure. In other words, ADA is likely to fall. In the upward move, moving averages are indicating a bullish crossover.

ADA/USD Medium-term bias: Bullish
On the 4-hour chart, ADA is consolidating  between $0.032 and $0.036 before the current upward move. The bulls broke the resistance at $0.036 and moved upward. Later, the price pullback to retest the $0.036 support before the final upward move. The ADA has risen to a high of $0.046. The bulls have made three attempts at the overhead resistance without breaking it.

ADA/USD - 4 Hour Chart

4-hour Chart Indicators Reading
The 21-day SMA and the 50-day SMA are trending upward indicating the bullish trend. The Relative Strength Index period 14 level indicates that the price is in the bullish trend zone. ADA is likely to rise.

General Outlook for Cardano (ADA)
Cardano is in an upward move to the previous highs. ADA is currently facing resistance at $0.045 price level. Nevertheless, at the same time, the stochastic is indicating that the coin is in the overbought region. Therefore the upward move may be interrupted and ADA may fall.

ADATrade Signal
Instrument: ADAUSD
Order: Buy Limit
Entry price: $0.042
Stop: $0.040
Target: $0.056

Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
Share with other traders!

Author : Azeez Mustapha

Avatar

Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.