ADA Price Analysis – January 26
According to the daily chart, the Cardano price movement has been confined within a price range.
Resistance levels: $0.40, $0.42, $0.44
Support levels: $0.28, $0.26, $0.24
ADA/USD experiences a downward correction in the early hours of today after touching the daily high at $0.35. But recently, the traders have seen in the previous price action that ADA/USD uses about two days correction before resuming uptrend. In the meantime, the Cardano price is fluctuating between $0.32 and 0.38. Therefore, the upward movement of the coin has been impeded at the $0.35 resistance.
What is the Next Direction of Cardano?
ADA/USD currently faces rejection at the $0.35 resistance level as the coin moves within the 9-day and 21-day moving averages. Meanwhile, on the upside, a strong bounce above $0.35 may propel the price to break the resistance at $0.38 and the bullish momentum may extend above the 9-day and 21-day moving averages but the technical indicator RSI (14) stays below the 60-level.
However, any bullish movement above the moving averages may hit the potential resistance levels at $0.40, $0.42, and $0.44 but where the upside momentum fails to resume; the bears could take advantage to break below the $0.30 support. This could sink the coin to the support levels of $0.28, $0.26, and $0.24.
ADA/BTC Market: Moves towards the Upside
Against Bitcoin, the market is seen to be moving above the 9-day and 21-day moving averages within the channel where the price is expected to break the upper boundary of the channel. However, should the price cross above the channel, the market could experience more additional bullish trends that may touch the nearest resistance level of 1250 SAT and above.
In other words, if the bears step back and push the market below the 9-day moving average then, ADA/BTC may reach the support levels of 90 SAT and below. More so, the RSI (14) indicator shows that the market may likely follow the sideways movement as the signal line moves below the 70-level.