Cardano (ADA) Recently, it started to experience a decline, succumbing to the trends in the cryptocurrency market. However, the smart contract platform managed to rise, exhibiting more positive price action yesterday.
Cardano (ADA) price It is currently trading at $1.28 and looks set to reach $1.40 again very soon. The current market sentiment will likely be needed to assist the bulls towards $1.70.
Cardano (ADA) price had a strong recovery yesterday and sent positive signals in the European session this morning to help this recovery continue. The road seems to be wide open for a return towards $1.40, so more entry into ADA is expected.
Depending on the headwinds, the bulls will need every bit of help to get there, but some key technical resistances all appear to have dropped to $1.40 together, limiting any possible upside.
Cardano traders can earn 37% if they plan their trades correctly.
ADA priceWith this reversal, aided by the recovery in the global markets yesterday, the bulls now have no hurdles to start pushing the price action up to $1.40.
However, things start to get tough after this point as traders will want to earn around 16% at that point and face three heavy elements of technical resistance at the same level.
ADA bulls have to face the 55-day Simple Moving Average, which has already proven its resistance potential on Dec. 27. Add to this the monthly pivot respected at the beginning of January and the green ascending trendline that will serve as an additional boundary for further bullishness. If the bulls can break out of that zone by turning all the previously mentioned elements into support, profits rise to 37% if you wait for another leg higher at $1.70 and things go well.
Markets are very nervous about the Fed’s interest rate in 2022, and sentiment could easily change overnight if the Fed signals further rate hikes as expected.
This could result in investors fleeing the scene again and cryptocurrencies exiting portfolios as “First Dump”. It is quite important to wait for the bears to pierce the monthly S1 support level at $1.0 and a historic low. A further downside would see a slowdown in the correction near $0.75, with the monthly S2 support level as guidance.
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.