Cardano (ADA) Technical Analysis

The price of ADA coin has experienced a period of strong growth in recent weeks, rising from a valuation of less than 35 cents to one near $1.2 per specimen. After reaching this peak, the price began to return downward, but found some stability in the first decade of December. Since then, ADA has been moving in a sideways channel between about 84 cents and $1.13.

At the time of writing, ADA is practically in the middle of this channel, around 99 cents per specimen. Specifically, ADA is sitting on initial support, which is, however, very weak.

The current state suggests some contrast between supply and demand. To demonstrate this, significant is Monday’s candle, which shows that the gain has been almost totally reabsorbed by supply.

For ADA to rise, it would be important to maintain the psychological value of $1 and aim to position above $1.1 again. Even better would be to exceed 1.13, effectively breaking through the upper limit of the channel.

However, patience and caution are needed. There are indeed some non-positive candles, but taken alone they do not give any certainty and we must take into account the particular context we are experiencing, between memecoins gone crazy and Donald Trump just taking office.

In any case, ADA should defend the current level by its fingernails. Below it are several supports (95 and 90 cents), but if we go down we may have to turn our eyes to the 84-cent level, which is the lower limit of the channel.