Cardano price presents buy opportunity before ADA gears up for 40% ascent – FXStreet

Sarah Tran Sarah Tran
Independent Analyst

Cardano price could tag lower levels before ADA bulls prepare to reverse the period of underperformance. The Ethereum killer could slide toward the January 10 low at $1.07 before falling toward the lower boundary of the prevailing chart pattern at $1.04.
Cardano price is forming a falling wedge pattern on the daily chart, as ADA continues to create lower lows and lower highs. The Arms Index (TRIN) indicates that there are currently more sellers than buyers in the market, suggesting that the token could fall lower to test crucial levels of support before a recovery is in the offing.
The first line of defense for Cardano price is at the December 4 low at $1.18. ADA may discover another foothold at the June 23 low at $1.10 before the token falls toward the January 10 low at $1.07. 
Additional selling pressure may push Cardano price lower to tag the lower boundary of the governing technical pattern at $1.04. 
However, if a spike in buy orders occurs, Cardano price may aim higher to tag the 61.8% Fibonacci retracement level, coinciding with the August 3 low at $1.26. ADA will face further resistance at the 21-day Simple Moving Average (SMA) at $1.30, then at the 50% retracement level at $1.33.
Additional obstacles may emerge at the 50-day SMA at $1.35 before Cardano price tags the upper boundary of the prevailing chart pattern at $1.39, coinciding with the 38.2% Fibonacci retracement level. 
ADAUSDT
ADA/USDT daily chart
Investors should note that a slice above the aforementioned line of resistance may put a 40% climb toward $1.95 on the radar, a bullish target given by the governing technical pattern. 
However, before the optimistic target could be reached, ADA must also break above the 23.6% Fibonacci retracement level at $1.47, the 100-day SMA at $1.69 and the 200-day SMA at $1.81.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
As Ethereum prepares for its upgrade from proof-of-work to proof-of-stake, there is a group of miners preparing for a hard fork. ETC cooperative criticized the plan for a hard fork of the Ethereum network, however, proof-of-work proponents responded negatively. 
Ripple experienced a significant movement of tokens onto active wallets and exchanges. XRP has printed classical bearish divergence in recent days. A breach above the $0.48 level would invalidate the bearish trend.
Dogecoin and other meme coins rally as drums beat for the upcoming ETH merge. DOGE sits on robust support highlighted by the IOMAP cohorts at $0.0681. Whales ease off their selling spree as retail investors return to reinforce the uptrend.
BTC drops by 2%, almost erasing all gains accrued over the last week. Attention is shifting to Bitcoin's $24K inflection point amid rising selling pressure from the 100-day SMA. A bullish RSI on the daily chart upholds BTC's uptrend.
Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

source