Cardano keeps steady above support as tailwinds emerge in cryptos

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.