Cardano price analysis: ADA braced to test $1.2 resistance after bullish intra-day trade

TL;DR Breakdown

• Cardano price rose 2 percent on the day to reach as high as $1.17
• Trading volume rose 23 percent to indicate bullish domination in the market
• Major technical indicators show token in prime position to move above $1.2

Cardano price analysis for the day showed bullish signs, as price rose above the resistance level at $1.1 with a 2 percent increment. The next expected target for the current trend is to cross and consolidate above the $1.2 mark, where profit taking is expected. ADA has been subject to a turbulent price action over the past 10 days, with price mostly hovering around $1.01-$1.11 range. The last time price reached as high as $2.2 was on January 21, after which a significant decline began for the token. Over the current trend, major technical indicators suggest bullish outlook is set to continue for ADA, with possibility of a stronger rally to initiate once the $1.2 resistance is cleared.

The larger cryptocurrency market showed positive movements across the board, with Bitcoin racing above $41,000 with a significant 9 percent increment. Ethereum consolidated above the crucial $3,000 mark with a 5 percent rise, while Altcoins also depicted gains. Ripple rose 6 percent to move as high as $0.66, with Litecoin and Dogecoin rising 7 and 4 percent, respectively. Terra and Solana also moved 7 percent higher, respectively.

ADA/USD 24-hour chart: Market valuation tips for price consolidation above $1.1

On the 24-hour candlestick chart for the ADA/USD trade pair, price can be seen sitting above the crucial 25 and 50-day exponential moving averages (EMAs). This provides an ideal platform for Cardano to consolidate towards $1.2. The Relative Strength Index (RSI) supports the movement with an encouraging market valuation at 47.45. Similarly, the moving average convergence divergence (MACD) sits above its neutral zone, having made the move on February 4. However, it can also be observed that sellers are waiting in the wings and ADA could potentially decline below $1.1 support if the larger cryptocurrency market faces sell offs after recent upturns.

ADA/USD 4-hour chart: Price needs to close above $1.1 to maintain momentum

The 4-hour chart for Cardano price analysis shows a potentially overvalued status for the token, which may initiate sell offs to bring price down. As the US market closes, ADA is expected to close above the $1.1 support but to maintain push to reach $1.2, price must close above $1.14 over the coming trading sessions to continue momentum. The overvalued RSI at 56.87 suggests price may be in line for a test to maintain the $1.1 level.

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