Cardano (ADA) Price Pulls Off Monthly High, Good time to Buy ?
Is it A Good time to Buy ADA?
Cardano (ADA) has had an amazing month as prices rose over 70% since the 1st of August. After such a strong push, ADA price has started to retrace off near ATHs. BTC & ETH stayed steady the last few days which allowed many alt coins to go parabolic. Since then, the overall market has started to retrace after nearly 30 days of up-trending.
The current retracement is very healthy and was completely expected as it will allow the market to regain strength for its next potential leg that can push higher.
Over the past few days, ADA has been respecting a descending channel. This may be a potential bull flag formation and it would activate once the top trend line breaks. At the time of writing, Cardano (ADA) must break & hold its minor resistance zone found at $1.97-$2.02.
If bulls manage to pull this off, ADA will surge to its next resistance found at $2.11. If this level gets cleared, the most important zone to clear for a new high is the major resistance zone from $2.19-$2.24. ADA will then move to its given targets.
Cardano Price Analysis: ADA/USDT 4 Hour Chart
<img src="https://s3.tradingview.com/snapshots/d/dqa7JMMv.png" alt="TradingView Chart">
At the time of writing, ADA just wicked off of its major support zone. This zone is found from $1.85-$1.89 and is a strong bounce zone . Along with this support zone lies the bottom trend line of the descending channel which has acted as a support in the past. In addition to these two marks lies the 60MA. This MA has held as support for nearly 3 weeks & it can be used as a good gauge to determine whether ADA is in an uptrend or not. Breaking below these three marks will send ADA back down to $1.77-$1.67.
While looking at the Stochastic RSI, we can see how it has been coiling within the oversold region. This is a usual pattern seen before a stronger bounce occurs. As long as strength can push above the 20 value, we should expect ADA to continue its bounce. The regular RSI has been falling for nearly 4 days and it has formed a hidden bullish divergence. Once strength breaks above the 50 value, we can expect Cardano to push back to its minor resistance zone.
ADA Intraday Analysis