Jonathan Morgan
Independent Analyst
- Cardano price has held the $1 value area with significant strength and buying.
- ‘Smart money’ positions have more than doubled their ADA holdings.
- A bullish rise seems imminent.
Cardano price continues to hold on to the $1 value area as its primary support zone. A massive amount of buying within that value area has occurred over the past ten days, with more accumulation occurring every day. The net result of this buying behavior is an anticipated rally.
Cardano price action eyes a return to $1.42 as bulls maintain intense buying pressure at $1
Cardano price could soon see a nice rally coming soon. The current trading range is one of the most constricted Cardano has traded over the past few years. It is anticipated that a bullish breakout will be at least three times as high as the consolidation zone was long.
One of the primary reasons for anticipating a bullish break is a recent alert from Santiment, highlighting the accumulation of ADA at the $1 value area. Santiment Tweeted, “… large addresses hodling between $10k and 1M $ADA, own 113% more in their collective bags since the drop on January 17th, accumulating $53.6M in tokens.”
A hypothetical long entry now exists on the Point and Figure chart of Cardano price. The entry is a buy stop order at $1.14, a stop loss at $1.06, and a profit target at $1.42. In addition, the entry is based on an Ascending Triple Top pattern, where the entry coincides with a breakout above the upper part of the ten-day trading range.
ADA/USD $0.02/3-box Reversal Point and Figure Chart
Ideally, the current O-column would drop another box, creating an opportunity to develop a Bear Trap pattern along with the Ascending Triple Top pattern. Unfortunately, the hypothetical long entry is invalidated if Cardano price drops below $0.96.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Why crypto may see a recovery right before or shortly after Bitcoin halving
Cryptocurrency market is bleeding, with Bitcoin price leading altcoins south in a broader market crash. The elevated risk levels have bulls sitting on their hands, but analysts from Santiment say this bleed may only be cauterized right before or shortly after the halving.
Manta Network price braces for volatility as $44 million worth of MANTA is due to flood markets
Manta Network (MANTA) price was not spared from the broader market crash instigated by a weakness in the Bitcoin (BTC) market. While analysts call a bottoming out in the BTC price, the Web3 modular ecosystem token could suffer further impact.
Bitcoin price uptrend to continue post-halving, Bernstein report says as traders remain in disarray
Bitcoin is dropping amid elevated risk levels in the market. It comes as traders count hours to the much-anticipated halving event. Amid the market lull, experts say we may not see a rally until after the halving.
OMNI post nearly 50% loss after airdrop and exchange listing
Omni network (OMNI) lost nearly 50% of its value on Wednesday after investors dumped the token following its listing on top crypto exchanges. A potential reason for the crash may be due to the wider crypto market slump.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.