Price Analysis

Cardano Price on a Downtrend! ADA Could Skyrocket If It Replicates 2020 Price Action

In tandem with the entire crypto market, Cardano Price has been struggling to kick off a bullish momentum. For days, ADA has been consolidating, if not stooping low. Grayscale’s addition of ADA to its portfolio, which pushed the price up 5%, was the sole driver it saw. Since then, there hasn’t been any notable price action. 

Cardano is currently trading at $1.22, From here ADA will either bounce back up or slide down to support levels at $1.15. Irrespective of which direction it moves an uptrend from there is potentially on the cards.

For now, a comeback from buyers will be needed to hit the resistance at $1.25 and continue to rise. However, a close above the $1.31 level will be needed to declare a bullish momentum. 

If ADA manages to surge above those levels, $1.37 and $1.44 will be the next resistance levels. 

However, if ADA does not show resilience and continues to dip further $1.156 will act as support. Any moment below this level will validate a bearish momentum. 

Deja Vu Much?

Popular crypto analyst and trader “Crypto Capital Venture” in a recent Youtube Video makes a bullish case for ADA. He recalls the price action of ADA following the launch of Shelly Hardfork and how replication is now possible with the launch of Alanzo Hardfork on the network.

The analyst has noticed that the events that happened prior to the Shelly Hardfork are being repeated by ADA right now.

Around the Shelly Hardfork event i.e Sept -Nov 2020, ADA was in a consolidation phase for a while. It then made a rebound from the 200 DMA and this occurred shortly after the 20DMA fell below 50DMA. This action kept the token afloat for a while.

In Mid November when the 20DMA crossed over 50DMA, ADA took off into a bull rally and surged high. 

In the present scenario, ADA is heading towards the crucial support line of 200 DMA and 20DMA has fallen below 50DMA 

Considering this Deja Vu scenario, ADA is poised for a huge surge once, 20 DMA crosses over the 50 DMA.

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Haripriya Sureban

A writer and a Crypto fanatic exploring the DeFi Space. Staying abreast on all the crypto trends and trivia is my forte. For the rest I nerd out on movies and series.

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