Cardano’s downtrend lasted about 145 days, with the highest level in price last seen in September 2021. overlapping low peaks, Cardano (ADA) priceIt lowered its price to $1.15 on January 22. The $1.15 level is the lowest level since May 2021.
Fortunately, the existence of a credible ‘demand zone’ in ADA price started a ‘bullish rally’ in case of a reset and buyers gaining an accumulation phase.
ADA Daily Chart
At press time Cardano (ADA) The price settled in a critical demand area between $1.0-0.86. This channel has become somewhat of a safe-haven for ADA after going through two full bear market cycles, one from late February to March and the other from May to July 2021.
The channel was also responsible for two major bull runs. ADA recorded a 182% gain, followed by an all-time high of $3.16, up 260%.
Now, historical levels play an important role in trading behavior, but it’s also important to evaluate general market conditions before making a definitive investment. With Bitcoin’s struggle on the chart set to continue until it discovers solid support, ADA could possibly enter a period of accumulation around $1. At this stage, new buy orders will be offset by wider market pressure, leading to sideways movements.
Meanwhile, observers should note some key areas on the chart. For example, a close above $1.50 will rekindle hopes of a bull run, while a move below $0.80 will open the way for another sell-off.
Indicators
Interestingly, a large bullish divergence was seen in the daily RSI, forming higher lows compared to ADA’s lower lows. Such differences often indicate a changing market trend.
However, the Awesome Oscillator’s red bars will keep buyers above momentum-supported sellers in the short term.
As a result
Mixed signals on the daily indicators could lead to a period of sideways movement as ADA tries to rekindle a fresh rally at $0.86-1. Those looking to buy ADA at its current level should maintain a tight stop-loss to protect their setup from wider market uncertainties.
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.