ADA Consolidation Likely to End By a Huge Move

After successfully retesting the $1 key support, Cardano (ADA) appears to prepare a possible breakout from its current price range, if the recent crypto bullish sentiment continues.

Key Support levels: $1, $0.92

Key Resistance levels: $1.1, $1.2

ADA’s price has been consolidating between the critical support ($1) and resistance ($1.1) for over a week. The recent price action and technical indicators give hints of a possible breakout off this range. ADA rarely stays for too long inside a tight range, so the most likely solution – volatility should return soon with a significant move.

ADAUSDT_2022-02-01_13-45-11
Chart by TradingView

Technical Indicators

Trading Volume: Volume has been very low lately for ADA, indicating a major breakout can be anticipated in the near future.

RSI: The daily RSI continues to be rather flat without a clear trend, this is in line with the current price action. However, on the lower timeframes such as the 4-hours’ chart, the RSI has been making higher lows, this is a bullish sign.

MACD: The daily MACD remains bearish, but the histogram and moving averages continue to curve up. At this rate, a bullish crossover is likely in the coming days, mainly if the price breaks the key resistance.

ADAUSDT_2022-02-01_13-44-59
Chart by TradingView

Bias

The current bias is somewhat bullish. This would be confirmed if ADA managed to break the key resistance at $1.1.

Short-Term Prediction for ADA Price

While in the next few days, ADA could continue to consolidate between the key levels, a breakout should be expected, particularly if the daily MACD goes through a bullish crossover. The current low volume seems to anticipate a significant move. Therefore, expect to see momentum and volatility return to ADA.

SPECIAL OFFER (Sponsored)

Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 25% off trading fees.

Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.

Source: https://cryptopotato.com/cardano-price-analysis-ada-consolidation-likely-to-end-by-a-huge-move/