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Cardano Price Prediction: ADA poised for more gains but bears should not be underestimated

Analytics

www.fxstreet.com 24 January 2023 03:35, UTC
  
Reading time: ~2 m

  • Cardano price remains elevated, hovering 50% above January's opening price.
  • ADA could rally toward $0.440, but the downside risk is prevalent.
  • A breach of $0.365 could be the early stages of a steeper decline.

Cardano price should remain on every trader's immediate watch list as the market shows potential for a volatile trading environment in the days to come. His thesis utilizes price action and technical indicators to forecast potential target zones for bulls and bears alike.

Cardano price to get volaitle

Cardano price Is at a standstill after having rallied 50% since January 1. As the consolidation persists, there are subtle cues within the technicals that suggest Cardano is going to profitable opportunities for traders to partake in.

Cardano price currently auctions at $0.37. On January 18, the bears breached the 8-day exponential moving average. The next day a classical retracement of the breached indicator occurred, enticing many bears to open a short position. On January 20, the classical trade setup was invalidated. The Cardona price rallied 10% in one day, trapping two days' worth of retail bears in the process.

At the time of writing, the Cardano price remains elevated above where the bears entered the market between $0.355 and $0.325. If market makers' goal is to shake out retail bears, the Cardano price could continue impulsing higher. Key levels to aim for would be the psychological $0.400 and the swing highs above November's monthly high at $0.437. The bullish scenario creates a potential 17% upswing from the current Cardano price.

tm/ada/1/23/22

To play Devil's Advocate, the Cardano price could also be set up for a decline towards the ascending trend line that has supported the 50% rally witnessed this month. A breach of the 8-day exponential moving average at $0.365 would be early confirmation of the downtrend scenario. A breach above the $0.39 liquidity zone would invalidate the bearish potential.


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