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Cardano Price Analysis: ADA retraces 18 percent, reversal to follow?


www.cryptopolitan.com 19 January 2022 13:24, UTC
Reading time: ~2 m

  • Cardano price analysis is bearish today.
  • ADA/USD continued lower overnight.
  • Previous resistance at $1.35 is currently tested as support.

Cardano price analysis is bearish today as we expect further downside to follow as the downside momentum is still strong. Likely, ADA/USD will break even lower and test the $1.30 support next.

Cardano Price Analysis: ADA retraces 18 percent, reversal to follow? 1
Cryptocurrency heat map. Source: Coin360

The market has seen mostly bearish momentum over the last 24 hours. Bitcoin is among the top performers, with a small gain of 0.81 percent, while Ethereum has lost 1.17 percent. Meanwhile, Cardano (ADA) trades with a substantial loss of almost 5 percent.

Cardano price movement in the last 24 hours: Cardano breaks lower, tests $1.35 previous resistance

ADA/USD traded in a range of $1.37 – $1.53, indicating substantial volatility over the last 24 hours. Trading volume has declined by 20.82 percent, totaling $4 billion. Meanwhile, the total market cap trades around $47.8 billion, ranking the coin in 5th place.

ADA/USD 4-hour chart: ADA looks to break even lower?

On the 4-hour chart, we can see slight rejection from the $1.35 mark for the Cardano price, however, bearish momentum should return shortly.

Cardano Price Analysis: ADA retraces 18 percent, reversal to follow?
ADA/USD 4-hour chart. Source: TradingView

Cardano price action has seen strong bullish momentum over the past weeks. After a new major swing low was set below $1.10 on the 10th of January, ADA/USD saw a strong push higher to $1.35 later last week.

The following retracement set clear higher low above $1.20 before more upside followed. Over the following days, ADA gained over 30 percent and broke past previous swing highs. 

The Cardano price peaked at $1.638 yesterday, meaning a very strong higher high has been set. However, since then, bears have taken over as ADA/USD retraces. Likely we will see some more downside tested before another higher low is set from which to move higher later in the week.

Cardano Price Analysis: Conclusion 

Cardano price analysis is bearish today as we saw more downside overnight after a strong rejection of upside. Therefore, ADA/USD should continue to the $1.30 mark next.

While waiting for Cardano to move further, see our articles on Coinbase Vault vs Wallet, Cardano price prediction, and crypto tax-loss harvesting.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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