Cardano shifts away from the lows, with 16% of gains on the table
|- Cardano builds further on the change to more positive sentiment yesterday.
- ADA price looks set to begin a recovery back to $1.40.
- Current market sentiment will be essential to help bulls, possibly towards $1.70.
Cardano (ADA) price is looking enticing to investors with a solid recovery yesterday and a continuation of that recovery during the European session this morning. More inflow is expected as the road is wide open for a return towards $1.40. Depending on the tailwinds, bulls will need every little bit of help to get there, however, as some substantial technical resistances are seen all falling in line together at $1.40, limiting possible upside.
Cardano investors could make 37% gains if they plan their trade right
Cardano price punched a hole in the wall made by bears that saw their downtrend cut short by a bullish knee-jerk reaction and breakout above the red descending trend line. With that reversal – helped by the recovery in global markets yesterday – bulls have no hurdles now to start ramping price action back up to $1.40. From there it starts to get tricky, however, as investors will want to book some 16% of gains at that point and will also face three heavy technical resistance elements all at the same level.
ADA bulls need to face the 55-day Simple Moving Average coming in that has already proven its resistance potential on December 27. Add to that the monthly pivot that has been well respected at the beginning of January and the green ascending trend line. If bulls can crack that region by turning all previously mentioned elements into support, expect another leg higher towards $1.70, and profits mount to 37%.
ADA/USD daily chart
Markets are very nervous about the FED’s rate path in 2022, and sentiment could easily switch overnight if the FED hints at more rate hikes, as expected. This could see investors fleeing the scene again and cryptocurrencies being cut out of portfolios as ‘First Out’. Expect bears to drill on the monthly S1 support level at $1.0 and a historical low. A dip further would see a slowdown in the correction around $0.75 with the monthly S2 support level as a guide.
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