- Cardano price is one of the few top 10 cryptocurrencies to maintain a bullish weekly candlestick after Friday’s selling pressure.
- Significant short-term support remains.
- A combination of time cycles and a bullish defense is likely to turn into a massive bull run.
Cardano price wasn’t immune to the massive overnight flash crash that hit the broader cryptocurrency market. Overall, Cardano’s price performance remains a disappointment for long-term owners – but an exception could be made for last week’s trading activity. Amid intense selling pressure on Friday, with many altcoins seeing near double-digit percentage losses and significant weekly losses, Cardano held a positive weekly close.
The Cardano price forms a basis to serve as a launch pad for $ 3.00 and up
The Cardano price action spent a majority of the time last week establishing itself at the $ 1.45 to $ 1.50 price levels and battling for support. Some of the key support areas for Cardano are near the $ 1.50 mark: 2021 Volume Point of Control and the top of the cloud (Senkou Span A). Cardano’s ability to hold this level amid much more severe weakness in the altcoin market gives traders a taste of Cardano’s likely direction.
And then the flash crash happened during the New York midnight trading session. At one point Cardano slumped more than 25% and fell below the weekly Senkou Span B. Cardano price has since rebounded and is now holding steady above Senkou Span B.
A key factor in backing the idea that Cardano will do a new bull run is the state of the composite index. The arrows on the chart below point to the week of the swing low of Jan.
The candlestick shows lower closing prices and lower lows, while the composite index shows higher lows. When this discrepancy occurs it is known as regular bullish divergence. Regular bullish divergences warn market participants that the current downturn may soon be reversed, that demand for sell-side pressure has eased and buyers are likely to step in. This divergence appeared when Cardano found support against two key levels that represented the bullish outlook.
ADA / USDT weekly Ichimoku chart
Downside risk is likely limited to the $ 1.25 level where the weekly Senkou Span B and a final part of a high volume node exist. Underneath, however, is a huge sea of nothing – a flash crash territory exists at every week or day end below the value range of USD 1.25.
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