Cardano Price Analysis: ADA Consolidation Likely to End By a Huge Move

After successfully retesting the $1 key support, Cardano (ADA) appears to prepare a possible breakout from its current price range, if the recent crypto bullish sentiment continues.

Key Support levels: $1, $0.92

Key Resistance levels: $1.1, $1.2

ADA’s price has been consolidating between the critical support ($1) and resistance ($1.1) for over a week. The recent price action and technical indicators give hints of a possible breakout off this range. ADA rarely stays for too long inside a tight range, so the most likely solution – volatility should return soon with a significant move.

ADAUSDT_2022-02-01_13-45-11
Chart by TradingView

Technical Indicators

Trading Volume: Volume has been very low lately for ADA, indicating a major breakout can be anticipated in the near future.

RSI: The daily RSI continues to be rather flat without a clear trend, this is in line with the current price action. However, on the lower timeframes such as the 4-hours’ chart, the RSI has been making higher lows, this is a bullish sign.

MACD: The daily MACD remains bearish, but the histogram and moving averages continue to curve up. At this rate, a bullish crossover is likely in the coming days, mainly if the price breaks the key resistance.

ADAUSDT_2022-02-01_13-44-59
Chart by TradingView

Bias

The current bias is somewhat bullish. This would be confirmed if ADA managed to break the key resistance at $1.1.

Short-Term Prediction for ADA Price

While in the next few days, ADA could continue to consolidate between the key levels, a breakout should be expected, particularly if the daily MACD goes through a bullish crossover. The current low volume seems to anticipate a significant move. Therefore, expect to see momentum and volatility return to ADA.

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Cryptocurrency charts by TradingView.