Cardano price could get help from US job report to clean up winter losses, 31% gains on the horizon for ADA
- Cardano price produces slim gains as bulls break through major resistance.
- ADA is set up for a quick 5% gain intraday.
- If bulls can break $0.42, a whopping 31% gain is on the table for February.
Cardano (ADA) price has succeeded in breaking above key levels near $0.39 as the pivotal historical level at $0.388 and the 200-day Simple Moving Average (SMA) all got broken to the upside with the Federal Reserve meeting on Wednesday and the equity rally on Thursday as the biggest causes. With the US jobs report on the wires this afternoon, another 5% gain is in the cards for today as it would pre-position bulls for a 31% gain in the coming weeks as $0.524 will be the new profit-taking level.
Cardano price on its way to test the high of September 2022
Cardano price has made it through a very choppy week without tearing any clothes or getting injured. Meanwhile, bulls can give themselves a pat on the back as they have conquered two big bearish elements that have been capping the price action since November of last year. To the upside $0.421 is looming as a cap, but bulls might get support to get there for the last stretch.
ADA will get a hand from the US jobs report this morning as traders will be gearing up for the number later this Friday afternoon. With a range of 130K to 320K new hires, a very wide range is projected. Any number within that range or at least above 130K will be perceived as good and will see risk assets rally, triggering that final nudge higher for bulls to break above $0.421 and enter a new trading area where $0.524 is the new profit level.
ADA/USD daily chart
Risk to the downside comes with a possible false break as bulls have been exhausted after trying to claim that level above $0.40. As price action is not able to trade away from it, it means bears are still putting their weight against any firm up move and could soon kick price action back below $0.388 as bulls will start to book profit. After all, central banks this week kept repeating that more tightening is needed. Cardano price would slide back below $0.388 and could be seen descending quite rapidly toward $0.34 or $0.32 in search of support.
Author
Filip Lagaart
FXStreet
Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.
