Cardano (ADA) has been consolidating inside a tight range for a while, but it looks like a potential breakout is in the offing in the coming days.
Key Support Levels: $1, $0.92
Key Resistance Levels: $1.1, $1.2
ADA has been moving between the key support at $1 and resistance at $1.1 for the past week, unable to break free. Last Wednesday, there was an attempt to move above key resistance, but sellers pushed ADA back into the consolidation range.
At the time of writing, price action continues to consolidate on low volume (likely due to the weekend), which may herald a major move in the week ahead.
Chart by TradingView
technical indicators
Trading Volume – Volume has decreased since the sell-off and both volatility and volume are now minimal. This usually precedes a major move.
RSI: The daily RSI tries to rise but lacks momentum. The bulls will hope that the new week will provide the momentum that ADA needs to break out of the current range.
MACD – The daily MACD is still bearish, but the histogram and moving averages are curving up. With any luck, ADA can successfully break through the resistance that can fuel the price rally.
Chart by TradingView
Bias
The current bias is neutral. ADA needs to break out of the existing range to change this bias and get its next direction.
Short term prediction for ADA price
The current consolidation signals a quiet period for ADA with low volatility. The range between $1 and $1.1 is very tight and the price will eventually break out, probably in the next few days. Therefore, expect ADA to make a significant move in the coming week as bears and bulls battle it out for dominance.
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Cryptocurrency charts from TradingView.
This post The calm before the storm, the imminent rupture of the ADA?
was published first on https://cryptopotato.com/cardano-price-analysis-the-calm-before-the-storm-adas-breakout-imminent/
