After seeing a massive sell-off at the start of the year, Cardano (ADA) has started to make some gains. Although the coin still remains bearish. We have seen it pair up with some of the declines we saw during the crypto winter. But despite this, we don’t see enough momentum to keep this surge going. Here are some highlights first:
At press time, ADA was trading slightly above $1 despite falling 3% for the day.
The coin has surged by over 20% over the last 10 days in a surprise bullish breakout
But technical indicators show that the momentum will slow, eventually reversing at the $1.2 mark
Data Source: Tradingview.com
Cardano (ADA) – Price prediction and analysis
The recent ADA rally has brought some renewed optimism among bulls that perhaps the coin is about to reverse its bearish outlook. ADA is in fact up over the last 7 days and appears to be consolidating most of these gains.
In fact, after tanking by nearly 45% between January 20 and 22, Cardano has shown some life. While this upswing is quite impressive to say the very least, we do not expect the coin to surge above its 50-day SMA of $1.26. So, it is likely that once the coin starts to get closer to that threshold, significant bear pressure will pull it back.
Is it time to buy Cardano (ADA)?
If you have not purchased Cardano yet, then you are in fact missing out on a decent coin. The recent crypto winter has put many good assets on the back foot. This creates the perfect chance to buy discounted crypto assets. ADA has to be the first pick and not just because it is backed by decent fundamentals. ADA has also always been one of the best-performing tokens in a long time.
The post Cardano (ADA) rallies more than 20% in 10 days – Here is why it won’t go further up appeared first on Coin Journal.