Cardano (ADA) Technical Analysis: 2nd Time Lucky? ADA Reattempts Reversal Through 1D Ichimoku Cloud
Around this time last month, we witnessed ADA making a convincing move towards a longstanding resisting Kumo on the 1D Ichimoku, along with a number of other promising signals following the Emurgo partnership with MetAps Plus. Just as candles began to enter the cloud and exhibit signs of a bullish reversal, Bitcoin crashed by $400 and dragged the altcoin market down with it. This pulled ADA off-course and quickly put an end to the bullish market sentiment.
Throughout the rest of the month, ADA struggled to regain composure and became range-bound inside a narrow 110 Sats channel until the recent IronX exchange announcement four days ago ignited a breakout.
ADA is closing in on the same resisting cloud for a second time and hoping that the new listing on Bitpanda will provide fresh support to drive it back up the board.
Diving into the 1D ADA/BTC chart, we can see that ADA launched off the bottom support at 1,080 Sats after a three-week spell of very low volatility. During the uptrend, the asset was able to break cleanly through the 1,200 Sats resistance that had been holding inside a tight range and peak at 1,247 Sats before correcting.
Right now, the bears have started to add pressure on the running bulls and are trying to re-establish the 1,200 resistance level below. Over 1hr candles, however, we can see that after a brief correction period, indicators are starting to favor the bulls again as they ready themselves for another impulse movement.
1.The Relative Strength Index is showing a new uptrend leg as buying momentum picks back up after the last correction.
2. The 12MA on the MACD indicator is currently bearishly below the 26MA but starting to make its way back towards it as the bulls return.
3. The Chaikin Money Flow indicator line is now back above the zero line and rising, as buying pressure increases over selling pressure in the current trend.
From these signals, we can assume that bulls are still in control over the current uptrend and attempting to drive through the resisting Kumo in the short-term. However, over the broader candle range we can see that Bears have also been ramping up their pressure in the last few days and could exhaust the bulls if new support doesn’t arrive soon.
Cardano (ADA) Price Targets
All price targets ROI’s are set from the assets current value at 1,233 Sats.
PT 1: 1,306 Sats (5.92% ROI)
PT 2&3 [Bull Target Zone]: 1,434 and 1,507 Sats. (16.30% and 22.22% ROI respectively)