ADA Price Analysis: Cardano (ADA) Inches Its Way Towards a Bullish Breakout

By Domenic
July 23, 2021 Updated July 23, 2021
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  • ADA price is up nearly 5% on the day
  • ADA Price has been rejecting off major resistance zone
  • ADA comes inches away from breaking falling wedge

Cardano Price Today

Cardano (ADA) has held up very well throughout the bloody markets the last few months. Bulls have defended major support found at $1.00 very well as it seems it is now a floor. With the market starting to turn around, so is ADA. Much anticipation of a full functioning platform has investors keeping their bets on Cardano becoming a better Ethereum. 

While looking at the green falling wedge pattern, we can see a large breakout is soon to come. This pattern is 80% of the time a bullish one and has a minimum target of around $1.50. Cardano must fully clear the top trend of the wedge along with the major resistance found at $1.20 to be in position to start a strong uptrend.

IF the breakout is deemed successful, ADA will have to battle out next resistance at $1.27 along with the 200MA that has held price down for over a month. 

Cardano Price Analysis: ADA/USDT 4 Hour Chart

Shown in light gray, ADA has just attempted to breakout of a 2 week long descending channel. If price fails to hold above this, it may be in for a ride back down to lower support levels. Price will find support at $1.09 & $1.03. The support found at $1.03 will be a strong floor as the bottom trend of the falling wedge also sits near that area. A break below this mark will trigger a large sell off, but seems unlikely as of now. 

While looking at the RSI, we can see strength has just broken over a near 3 week downtrend line. This is the first step to revival as it confirms ADA is now in a short term uptrend. As long as RSI can stay over the 50 value, ADA remains bullish. The Stochastic RSI has been hanging out above the overbought line. This shows strength is maxed out and ADA has to make another upwards move soon or a short term pullback will be underway. 

ADA intraday levels 

  • Spot rate: $1.19
  • Trend: Bearish
  • Volatility: Medium
  • Support: $1.14
  • Resistance: $1.20

Domenic Fiore has a love for the financial markets. He decided to skip the college route to pursue entrepreneurship. He saw the vision to become an entrepreneur and wanted to achieve success from a young age. Domenic owned & operated a car detailing business since the age of 16, along with being a part of two CBD businesses through 2018 & 2019. He started his investment and trading career early trading in 2017 when he bought a newly released cryptocurrency alt-coin and saw 10x return in a few months. He then realized there was much potential and dove head first into learning everything he could. He became very passionate about technical analysis and knew it was his route to financial freedom. Over the last 4 years, Domenic has shared his analysis with many groups and received amazing feedback. Shortly after he wanted to help assist in the pursuit of spreading and helping others achieve success in the trading industry.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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