• Cardano price still has room to move to the upside as dollar strength backs off.
  • ADA price sees supportive tailwinds from the stock markets booking gains after positive measures out of China.
  • Expect to see an 18% rally possible, but then a rough patch could unfold with a sharp drop back to $0.40.

Cardano (ADA) price is breathing a sigh of relief after the slaughter from the past weekend, when Bitcoin price plummeted like a falling knife and ADA price reached the cusp of slipping below $0.40. In the end, price action backed away from that lower level and started to move upwards, with an accelerated move today as Asian stocks are firing up global stock markets on supportive language from the PBOC. Expect this to be a soft patch for ADA to move in as the dollar backs off, opening up 18% room to the upside.

ADA set to pop in limited time frame

Cardano price has had a very bumpy ride these past few days but is now starting to enter a calm phase as markets are decompressing. Traders will want to jump on some long positions but must be aware that they might be in the eye of the hurricane, which tends to be very calm and gives a false impression that the worst is over. Nothing could be further from the truth, as traders are not aware that this moment is a soft patch for some short-term gains, but nothing fundamentally has changed to create the conditions for a longer-term uptrend play.

ADA price looks to be on its way to $0.600, where the 55-day Simple Moving Average (SMA) is lingering. With the Relative Strength Index (RSI) room and potential are there for roughly 18% gains. Traders who manage that position well and take profit around those levels will be able to get out with fair gains.

ADA/USD daily chart

ADA/USD daily chart

Some analysts are already looking to the next pain point in the markets, and with rising rates, the obvious next choice is the housing market. Should there be another housing crash, people will not only lose money because of rising inflation but also see their most significant investment lose value as house prices plummet. That could spark the second significant tailwind for cryptocurrencies – another run on cash – with ADA price tumbling towards $0.400 and looking for support near $0.300 with a bounce possible off that still-well-respected red descending trend line. 



 

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

Bitcoin Weekly Forecast: Assessing chances of one last bear market rally for 2022

Bitcoin Weekly Forecast: Assessing chances of one last bear market rally for 2022

Bitcoin price is in a good place to trigger another bear market rally from a high-time frame perspective. This development, combined with the optimistic outlook seen in on-chain metrics, further strengthens the possibility of a happy ending to 2022.

More Bitcoin News

Uniswap price could kick-start a 14% rally if it reclaims this level

Uniswap price could kick-start a 14% rally if it reclaims this level

Uniswap price has been following the broader market bullish cues over the last few days sustaining its rise from 48 hours ago. Although the sentiment seems to have shifted slightly, UNI holders can still book profits if the Decentralized Finance (DeFi) token climbs to this level.

More UniSwap news

ATOM price suggests bears are still in control for these reasons

ATOM price suggests bears are still in control for these reasons

Cosmos price is producing a countertrend rally after suffering a steep decline throughout the month. If market conditions persist, ATOM could wipe out newly established bullish positions. Key levels have been defined to gauge ATOM’s next potential move.

More Cosmos news

Cardano Price Prediction: A new yearly low before the bounce

Cardano Price Prediction: A new yearly low before the bounce

Cardano price has suffered a vicious downtrend move throughout November. Ss price consolidates, the technicals suggest a bounce occurs while on-chain metrics hint that investors are considering securing profits sooner than later.

More Cardano news

Bitcoin: Assessing chances of one last bear market rally for 2022

Bitcoin: Assessing chances of one last bear market rally for 2022

BTC is in a good place to trigger another bear market rally from a high-time frame perspective. This development, combined with the optimistic outlook seen in on-chain metrics, further strengthens the possibility of a happy ending to 2022.

Read full analysis

BTC

ETH

XRP