- Cardano price sees bulls defending the S1 monthly support at $1.18.
- ADA price’s RSI indicator is ticking higher as investors buy into cryptocurrencies overall.
- Going into Christmas, expect a rally to reclaim some critical technical levels.
Cardano (ADA) price is seeing bullish signs as market sentiment turns positive for cryptocurrencies. Expect buying activity to persist throughout the day with a near-term target at $1.40. By Christmas expect $1.70 to come into view after a break above the black descending trend line and the $1.67 historical level. As this rally continues, there is a good chance it will extend into the New Year.
ADA price has investors preparing for the rally
Cardano price is set to start an uptrend as investors pile in and start buying en masse as end of year approaches. This could mark the start of a new trend to all-time highs in 2022. Bulls face a few hurdles at first, with the green ascending trend line coming in at around $1.40 and the black descending trend line dictating the trend since November. The breakout above the black trend line will be critical, as that will spark accelerated take-up of ADA coins by traders emboldened by the break.
ADA price is trying to reclaim $1.30 in the first phase, bringing more inflow and washing out bears hanging on their short positions below $1.40. Once through there, the black descending trend line comes into play. This has been dictating price action since mid-November will be a force to be reckoned with, as it has repulsed attempts from bulls to break above it five times. Once through there, the road is open for a further continuation towards $1.68, with the 55-day Simple Moving Average (SMA) capping further upside just above.
ADA/USD daily chart
Cardano price could, however, fail to break above the green ascending trend line and bulls could be pushed back against the monthly S1 support level at $1.18 instead. A break below the S1 would certainly see bulls licking their wounds, but could see a bounce off the $1.0 orange line as this historical and big figure level will see massive bull-buying.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.