ADA Bulls Eye $1: Cardano's Next Price Target?
Cardano (ADA) is showing signs of recovery after a recent pullback. Following a pattern seen in other altcoins, ADA experienced a price correction after a strong rally. The question now is whether this dip presents a buying opportunity or signals a near-term top.
Cardano Price Analysis
ADA briefly broke above the $0.86 resistance level earlier in the week but failed to sustain gains. A sharp reversal occurred, pushing the price back below this breakout point.
Bulls stepped in near the 20-day simple moving average (SMA) at $0.73, as indicated by the candlestick's long tail.
Here's what to watch for:
- Bullish Scenario: A successful break above $0.94 could propel ADA towards $1.02, with a potential target of $1.17.
- Bearish Scenario: A drop below the 20-day SMA could indicate a bull trap, potentially leading to a decline towards the 50-day SMA at $0.66.
Short-Term Indicators
The 4-hour chart suggests a possible bearish crossover of moving averages, signaling that bears are attempting a comeback. Resistance is expected at the 20-SMA.
Key levels to monitor:
- A rejection at the 20-SMA could lead to declines toward $0.75 and then $0.70.
- To regain control, buyers need to push the price above the 20-SMA, potentially targeting $0.90 and then $0.94.
As always, remember that cryptocurrency investments carry risk. Conduct thorough research before making any decisions.
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