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Cardano Price Analysis: Technicals are bullish on ADA/USD

www.cryptopolitan.com 16 November 2021 07:05, UTC
Reading time: ~3 m

  • Cardano price analysis is bullish today.
  • ADA/USD set another higher low above $2 yesterday.
  • Bullish momentum is slowly picking up momentum this morning.

The Cardano price analysis is bullish today, as we expect the $2.10 resistance to be broken next after a higher low was established yesterday. As a result, ADA/USD will break out of its current consolidation. If this occurs, we expect ADA/USD to continue rallying towards the all-time highs around $1.20. The Stochastic RSI has continued increasing this morning, suggesting that bullish momentum is slowly picking up momentum this morning. Also, Cardano’s price prediction shows no signs of stopping after yesterday’s higher low was established at $2.14. 

Cardano price movement in the last 24 hours: Cardano moves higher after retesting the $2 support

The price of ADA/USD fluctuated between $2.01 and $2.07 over the last 24 hours, giving a modest degree of volatility. Trading volume has dropped 20.9 percent to $1.5 billion, while the market capitalization now stands at around $68.73 billion, placing it in sixth place overall.

Yesterday, ADA/USD experienced some resistance around the $2.077 swing high while it failed to break above the 100-day moving average, currently controlling the market. As a result, Cardano’s price dropped back down towards $2 before breaking out again later on during the day. The cryptocurrency then went on another rally that allowed ADA/USD to set another higher low just slightly lower than yesterday’s high at $2.10–around 0 percent gain in the last 24 hours for the digital currency so far today.

ADA/USD 4-hour chart: ADA looks to break $2.10 next? 

On the 4-hour chart, we can see bullish momentum returning this morning, likely leading to a break higher today.

ADA/USD 4-hour chart. Source: TradingView

Looking at ADA/USD from a technical analysis point of view, we can say there have been some intense support levels around $2 over the last several days. Today, the digital currency is still trading above the first significant support level–the fast-approaching lows around $1.9764 and possibly going even lower if it does break below these lows.  The only resistance now stands at $2.10, followed by stronger resistance around $2., which must be broken next for ADA/USD to continue climbing towards its all-time high around $1.20.

Stochastic RSI on the 4-hour chart is already approaching overbought conditions, suggesting that bullish momentum will start to decrease; however, this does not account for ADA/USD already being in an uptrend and having broken above the 100-day moving average yesterday. This means that there’s still some room for further upside before we can say that bullish momentum has peaked.

A retracement was next, with most of the gain briefly lost as ADA/USD rose to $1.935 on the 10th of November. Since then, Cardano has established both lower highs and higher lows, indicating consolidation in a progressively narrower range.

The Cardano price has surged in the last 24 hours, with another downward swing yesterday evening only serving to heighten investor expectations. After a brief respite, bullish momentum is once again picking up steam. We may expect the Cardano price to test the $2.10 resistance as bulls are ready to break out once more.

Cardano Price Analysis: Conclusion 

The price analysis of Cardano is bullish today, as we saw another higher low set following consolidation over the weekend. As a result, ADA/USD has established a foundation on which to advance even further later today.

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