Cardano Ada Bulls Retest
Cardano Ada Bulls Retest

Cardano (ADA) is one of the top performers in the top-10, as determined from last week’s gains.

The ADA/USD price, for instance, is on a stretch versus other performing currencies and projects.

As of writing, ADA is changing hands at $0.27, adding 36, 31, and 21 percent against the USD, BTC, and ETH, respectively, in the last week of trading.

Interestingly at spot rates, participation is comparatively high, decent by all means. On the last day of trading, the average daily volume rose to $1.7 billion.

Despite the small increment, it is still at its peak, following last week’s sharp gains amid a slew of positive news.

Cardano (ADA) Price Overview

At $0.27 as of writing, the ADA price uptrend is still firm. The underlying bull momentum is also strong as per candlestick arrangement and other technical indicators supportive of bulls.

Notably, the ADA/USD price volatility has been high, spilling over from December 2020. During this time, following the breakout from $0.16, the coin has nearly doubled with clear boundaries between $0.20—on the lower side and $0.40—on the upper side.

These two serve as support and resistance levels and possible reaction points in the medium term.

Depending on whether the upside trend will continue, any break above $0.40 may see the ADA/USD price soar to $0.54 and $0.64—these are key Fibonacci extension levels of the two-year accumulation between 2018 and 2020.

On the lower side, $0.25, a previous bull target, and now support could be the first reaction point before the middle BB—a flexible support level.

Cardano (ADA) Market Movers

Cardano is a smart contracting platform, more like Ethereum, but primarily based on the Proof-of-Stake consensus algorithm. It is also peer-reviewed.

The final version of Cardano, called Voltaire, will allow smart contracting. Before then, two more phases must be activated in Goguen and Basho.

Before Goguen, there was Shelley, a phase allowing staking. Because of this, Cardano is decentralized and the biggest staking network in the world, replacing Polkadot.

In preparation for Goguen, the team is funding projects seeking to launch on Cardano under Project Catalyst. After the relaunch, funds rose to $500k.

Ahead of Goguen activation (tentatively Q1 2021) has been two Hard Fork Combinators (HFC). Also, there is a notable uptick in wallet creation;

And Google searches;

Both of these hint of interest—a factor that may support ADA prices.

Cardano (ADA) Price Prediction

Cardano Price Weekly Chart For January 11
Cardano Price Weekly Chart For January 11 via Trading View

The ADA price is bullish from a top-down approach.

From the daily chart, the ADA/USD is trading within a bullish breakout pattern. The confirmation of the $0.16-$0.20 breakout following last week’s gains could be the tailwind for further gains.

With firm fundamentals, every low may provide a loading opportunity for traders in the medium term. Aforementioned, the $0.25—the 1.68 percent Fibonacci extension level of the 2018 to 2020 trade range is the immediate support level.

Coincidentally, this level also flashes with the 61.8 percent Fibonacci retracement of last week’s bar, cementing its role as a possible reaction point in case of a pullback.

If ADA bulls continue to race higher, the immediate targets are $0.38 (last week’s high) and $0.54—the 3.68 Fibonacci extension of 2018 to 2020 squeeze.

On the lower side, immediate reaction points will be $0.25 and $0.20, respectively.

Disclaimer: Opinions expressed are not investment advice. Do your research.