Cardano Technical Analysis: ADA Keeps Trending Around $0.35
Daily Cardano ADA Price Analysis
- Cardano price picked up after finding support at the 20-day SMA.
- ADA is presently sandwiched between the 20-bar and 50-bar SMAs.
Following a $0.07 crash this Thursday, January 21, the Cardano price managed to find support at the 20-day SMA. Since then, ADA bulls managed to flip the $0.34 line from resistance to support, and it is currently trending along with the $0.35 level.
Cardano Price Moves Horizontally
As of now, it looks like the price control is flip-flopping between buyers and sellers. However, One should note that the moving average convergence/divergence (MACD) shows increasing bearish market momentum. This could indicate that bears could eventually take full control of the market.
Image: ADA/USD daily
If the price does drop, the bears could take ADA down to the $0.315 level, wherein 43,000 addresses had previously purchased 4.3 billion tokens. This support wall is strong enough to absorb a tremendous amount of selling pressure.
However, if the bulls take control, the Cardano price faces only one moderate resistance barrier on the upside at $0.37. Previously, at this level, 22,000 addresses had purchased 846 million ADA tokens. However, it seems like it will be pretty ambitious to expect these wild price swings.
Image: ADA/USD 4-hour
The 4-hour chart tells us that the Cardano price is presently sandwiched between the 20-bar and 50-bar SMAs. This could mean a further horizontal trend is expected.
Cardano Price Is Expected To Reach These Levels
Cardano price is likely going to continue its horizontal trend. If the bulls take control, the price could reach the $0.37 resistance as shown in the IOMAP. Upon breaking above this zone, ADA could reach $0.40.
On the other hand, if the sellers take control, the price may drop to $0.315 before it encounters a healthy support wall.