Cardano bulls maintain support, ADA readies for return to $1.25

Cardano price is struggling performance-wise when compared to its peers. As a result, Bitcoin, Ethereum, and a good chunk of the altcoin market have moved into positions that precede a bullish reversal. Cardano, however, has yet to display that kind of price action – but it may very soon.

Cardano price readies for a test of $1.25

Cardano price has experienced some significant whipsaws over the past few weeks. It gained nearly 46% from January 10 at $1.12 to January 18 at $1.60. Then, from the January 18 high, ADA collapsed 44% to the January 22 low at $0.91. But buyers have been resilient with their support of the $1 value area, preventing any daily close below the $1 level.

Attempts to push Cardano price higher during the Wednesday session have proven fruitful. ADA was trading near the $1.05 price level just before the US Federal Reserve policy decision was announced and then pushed higher to a new three-day high just shy of $1.16. If bulls can press Cardano to a daily close at or above $1.10, then a move to test the Kijun-Sen and Tenkan-Sen at $1.25 is highly probable.

ADA/USD Daily Ichimoku Kinko Hyo Chart

However, downside risks remain for Cardano price. This is especially true with the volatility before and after the Fed’s announcement. It is not uncommon to see wild rallies and flash-crashes immediately after the Chairman’s press event – so traders and investors should remain on the defense until a directional bias has been established.

Downside risks should be limited to the $1.00 value area despite the volatility. Any daily or weekly close below $1.00 would invalidate any further bullish outlook.