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Cardano price might be loading up for a 15% countertrend spike


www.fxstreet.com 23 November 2022 02:52, UTC
Reading time: ~2 m

  • Cardano price experienced a 30% decline since the start of the month.
  • ADA shows several bullish divergences, while the Volume Profile Indicator remains sparse in transactions.
  • Invalidation of the bullish idea is a breach below $0.29.

Cardano price action could be setting up a profitable opportunity to the upside. Traders should hone in on this digital asset to get the best entry and maximize profits in the coming days. Key levels have been defined to gauge ADA's next potential move.

Cardano price could challenge bear

Cardano price is showing interesting retaliation signals during the final trading week of November. On Tuesday November 22, the bulls recovered 5% of market losses after the weekend's 10% plummet. As a profit-taking pause occurs, the technicals show subtle signs that the bulls may have more fuel in the tank.

Cardano price currently auctions at $0.3121, just below the previous consolidation's support zone. During the weekend's decline, the bears established a new monthly low at $0.298. The Relative Strength Index shows the bulls are still submerged below oversold levels. Still, there is a subtle bullish divergence between the newfound monthly low and the previous one established on November 9. Additionally, the Volume Profile Indicator shows the weekend's decline with far fewer sellers than November 9's liquidation.

Using auction market theory techniques, the ADA token may be able to rise 14% towards the mid $0.35 barrier to offset the bullish divergence. The recently breached 21-day simple moving average will likely play as an additional resistant barrier within the same region at $0.36


ADA/USDT 1-Day Chart

Invalidation of the bullish scenario could arise if the bears breach the newfound swing low at $0.298. f the price breaks this area, the entire uptrend scenario would be void, and the ADA price could fall into the mid-$0.20 level resulting in a 15% decrease from the current Cardano price.

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