Cardano Price Analysis: Bulls Are Getting Ready

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• • CARDANO is turning bullish in the short-term with price creating higher highs and lower lows
  • On the four-hour time frame a bullish inverted head and shoulders pattern is evident
  • Medium-term is inconclusive as price trades close to the ADA / USD pair’s 50-day moving average but crucially below its 100-day

ADA / USD Short-term price analysis

In the short-term, Cardano is starting to show bullish signs, with price creating higher highs and lower lows, the pair is currently consolidating above the neckline of a bullish inverted head and shoulders pattern.

Overall a cautious bullish tone is warranted, and further price stabilization may be a good indication that the ADA / USD pair is getting ready to launch higher. This is certainly another cryptocurrency that is at a critical juncture in the short-term and should be on the watchlist of traders who are looking at the crypto buy-side.

Pattern Watch

Aside from the bullish inverted head and shoulder pattern, a sharp decline from current levels would effectively see the formation of a bearish head and shoulders pattern across the lower time frames.

A bearish drop would negate the bullish short-term view and a further decline towards the all-time low for Cardano would seem the most likely play.

ADA / USD H4 CHART                                                                         (Source: TradingView)

Key Moving Averages

Price is currently trading around both the 50 and 200-period moving averages on the four-hour time frames, highlighting that a decisive move ahead may be upon us.

Volumes

ADA / USD trading volumes had been lacking during the early 2019 bull move higher, indicating that any strong moves higher or lower on light volume may be worth fading.

ADA / USD Medium-term price analysis

Cardano’s medium-term prospects appeared more promising at the start of the year, although the early 2019 rally has fizzled out. The ADA / USD pair does show some potential to rally in the medium-term, if bulls can break the current 2019 high and crucially rally above its 100-day moving average.

The falling trendlines seen on the daily chart, at the 0.60 and 0.70 levels offer buyers a solid upside target if the 2019 high is broken with conviction.

A further advance above the trendline would really start to ignite the up move, with the former swing-high just above the 0.80 level a very obvious target ADA / USD buyers.

Pattern Watch

In sync with the lower time frames, the daily time frame is showing ADA / USD trading above a bullish inverse head and shoulders and price still creating bullish higher highs and lower lows.

Key Moving Averages

Price currently trades within the 50-day and 100-day moving averages, a breakout should be watched for next overall medium-term theme to emerge.

Volume

The only real worries for bulls would be the volume indicator, which appears to show the largest ever one-day selling volume occurring during the ADA / USD pair’s heavy decline from its 2019 trading high, on January 10^th.

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