• Cardano investors have made the buy-side volume demand explode.
  • In just two trading days, the ADA price action has ramped up 21% in value.
  • Expect at least another 28% as this breakthrough will attract more investors.

Cardano (ADA) price action saw massive inflows from bulls on Sunday as they managed to  tear down the bearish wall that short-sellers had built at $1.40. ADA bulls were able to touch the green ascending longer-term trend line vital for any longer-term uptrend in Cardano price. Expect to see $1.67 reached quickly and if markets can provide  a tailwind, for $1.80 or $2.00 to be gained by the end of this week.

Bulls make a coup and hijack ADA price action with bears fleeing the scene

This week, the future looks bright for Cardano price action as bulls managed to break through multiple resistance levels that were perceived to be almost impossible to tear down. But  on Sunday bulls  broke the 55-day Simple Moving Average (SMA), the monthly pivot and reentered above the green ascending trend line that will replay its part as the backbone for the uptrend. The move came close to turning into a bull trap, however, as bulls could not close above the green ascending trend line firmly, but a bounce off the 55-day SMA has acted as a launching platform for the stellar reaction ADA is performing this morning during the European session.

Going forward, expect the first fundamental profit level for ADA price to be at $1.67, the monthly R1 resistance level and a longer-term level in the process of being defined. This area will undoubtedly see some profit-taking, but the overall target will be at around $1.90 and just below the 200-day at $1.83. A fade here would make sense, testing the $1.67 support level, before another leg up to $2.00 medium-term.

ADA/USD daily chart

ADA/USD daily chart

The risk to the downside for ADA bulls could be a quick fade and bears pushing bulls against the $1.40 barrier again. A break of that level would see an acceleration of selling with bulls cutting short their positions and reverting to that same sell-side volume. This could then lead to a possible nosedive to $1.00. This is a possible scenario in the near term, with the Relative Strength Index (RSI) sharply rising to overbought, as bulls lack leverage and the highly elevated RSI caps new gains.

 

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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Crypto bloodbath hasn’t even started yet

Crypto bloodbath hasn’t even started yet

Bitcoin price, Ethereum and other cryptocurrencies are on the backfoot after the massive slaughter that happened on the trading floor on Wall Street yesterday. Instead of cleaning up the pink sheets from the floor, the cleaning staff are probably busy sweeping up plenty of burned-out traders that got annihilated overnight as the Dow Jones printed its worst performance since June 2020.

More Bitcoin News

Dogecoin founder says crypto investors are clueless while DOGE price crumbles under pressure

Dogecoin founder says crypto investors are clueless while DOGE price crumbles under pressure

Dogecoin’s co-founder advises crypto investors to perform actual research and stay informed about their crypto investments. While the meme coin crumbles under pressure, analysts find a bullish pattern that could drive a rally in Dogecoin. 

More Dogecoin News

Is Do Kwon going to get arrested after Terra's LUNA price collapse?

Is Do Kwon going to get arrested after Terra's LUNA price collapse?

The collapse of Terra's LUNA price and algorithmic stablecoin TerraUSD (UST) has sparked outrage in the crypto community. Institutions and retail investors suffered significant losses when $40 billion in LUNA and UST’s market value was destroyed within a week. 

More Terra News

If you haven’t sold yet, XRP will give you another chance before it dumps to $0.19

If you haven’t sold yet, XRP will give you another chance before it dumps to $0.19

XRP price is in a rut as it followed Bitcoin and other altcoins into a crash after the LUNA-UST debacle. Ripple, on the other hand, is relentlessly fighting against the US Securities and Exchange Commission’s (SEC) allegations and to prove that XRP token is not a security.

More Ripple News

Bitcoin: Multiple scenarios arrive at the same bearish conclusion

Bitcoin: Multiple scenarios arrive at the same bearish conclusion

Bitcoin price shows interesting setups from multiple time frames that hint at a confluence. This convergence occurs for the short-term bullish outlook as well as the macro bearish scenario for BTC. 

Read full analysis

BTC

ETH

XRP