Cardano Price Analysis: ADA Price Rally Reclaiming Crucial Resistance Of $1.5
The Cardano coin investors experienced a significant retracement indicating a total loss of around 60% when the coin plummeted to the $1.2 mark. After spending a decent time at this support, the coin hints at recovery for its investors. Moreover, the founder Charles Hoskinson mentioned today that more than a dozen would-be launching on Cardano by the end of Q1.
Key technical element to ponder
The last time we covered an article on Cardano, the rapid sell-off on December 4th retested the support level of $1.2. Though the price showed a significant recovery on the same day, the following trading actively led the price to the bottom support again.
The coin price retested the $1.2 mark multiple times for nearly two weeks to check for sufficient support. From December 21st, the pair started rising again and is trying to recapture the $1.5 resistance.
The ADA price trading below the 50, 100, and 200 EMA indicates a bearish trend. However, the recent pump has crossed above the dynamic resistance of 20 EMA and flipped into potential support.
The Relative Strength Index(54) moves above the neutral level(50), indicating a positive outlook for this coin.
ADA coin 4-hour Time Frame Chart
The recovery phase in ADA coin has formed a cup and handle pattern in the 4-hr time frame chart. On December 27th, the price gave a strong breakout from the $1.5 neckline, with a good volume pump. The pair is still trying to hold above the level, providing a long entry opportunity for traders.
The important levels for the coin on the upside are at $1.61, followed by the $1.71. And, on the lower side, the support levels are at $1.5 and $1.38.Source