Cardano (ADA) Price Analysis: ADA Manages to Hold Significant Support as Price Tries To Advance

Cardano (ADA) pricecontinues to hold the $1 value area as the primary support zone. In the last ten days, a large amount of purchases have been made at this price level and more accumulation has occurred every day. The result of this buying behavior was interpreted as a “rally”.

Cardano price action returns to $1.42 as the bulls maintain the intense buying pressure at $1.

Cardano (ADA) it could soon experience a rally with good results. The current trading range is one of the narrowest areas Cardano has traded in the past few years. A breakout to trigger a rise is expected to be at least three times higher than the long consolidation zone.

One of the main reasons why a breakout that will trigger a bullish break in Cardano is expected was Santiment’s warning, which emphasized the accumulation at the $1 level. According to Santiment, “… major addresses holding between $10,000 and $1 million in ADA have an 113% higher share since the January 17 declines, with more than $53.6 million in total savings.”

There is now a hypothetical long entry in the “point and shape chart” of Cardano price. The entry could be a buy stop at $1.14, a stop loss at $1.06 and a profit target at $1.42. Additionally, the entry is based on the Ascending Triple Top pattern, where the entry coincides with a break above the top of the ten-day trading range.

Ideally, the existing “O column” leaves another box, creating an opportunity to develop a “Bear Trap model” along with the “Increasing Triple Top model”. Conversely, the hypothetical long entry will be invalidated if Cardano price drops below $0.96.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.

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