Cardano (ADA) Provides 20% Long Opportunity – Price Forecast
- ADA price penetrates beneath the weekly support floor around $1.20 to gather liquidity.
- A quick recovery will translate to a 20% surge, taking Cardano higher to $1.42.
- A 4hr candle close under $1.02 will nullify the bullish case for ADA.
Cardano (ADA) has traded beneath a critical support zone for some time. The near-term bearish picture might be forming a bottom that may reverse the alt’s current trend. Meanwhile, a recovery past the mentioned support will be vital to kick-start a swing run-up.
ADA Price Plans a Recovery
ADA price printed several swing lows near the support mark of $1.20 on 4 December 2021, leaving massive sell-stop liquidity beneath the level. On 8 January, the altcoin sliced through the footing and gathered liquidity, confirming market maker operation.
A quick recovery past $1.29 will be vital to launch a massive upswing since it represents a weekly support barrier. Market players may enter a long position around ADA’s current level – $1.10 and wait for Cardano to overcome the hurdle at $1.20.
Meanwhile, traders may begin trimming their holdings near the $1.35 obstacle. Other value areas that market players may scale profits are $1.39, then $1.52. Investors that may need to minimize losses can place stop-loss beneath the 8 January swing low of $1.12. Besides that, they can put the stop-loss comfortably beneath the demand zone’s bottom limit in the $1.02 – $1.19 range. However, that formation showcases 1.55RR trade.
Nevertheless, Cardano might depend on the overall market sentiment for decisive moves in either direction. Meanwhile, the crypto space continued to drop over the past weekend as Fed’s commentary hurt investor confidence.
Bitcoin also sees dominant downswings as the bellwether crypto slid towards the $40,000 mark, the lowest level since late September. With that, Bitcoin stayed nearly 42% lower from its record high of $69K.
Bitcoin needs a massive move past the $50K mark to trigger reliable bullishness across the financial space. That would also mean positive reactions from the altcoin market. Moreover, Cardano would have a lucrative environment for a higher move towards its targets. Nevertheless, we may have to wait for what the up-and-coming sessions will boast.
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