Cardano (ADA) May Dip Before Potential Rally To $1.20
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Cardano (ADA) is highly volatile, as analysts have predicted that it could fall in the short-term and rise in the long term.
A crypto analyst Kenshiyesreel, has taken a short position on ADA, which aims to pull the price back towards the $0.45-$0.50 region for accumulation.
However, other technical indicators like the Golden Cross suggest that ADA could continue with its bullish run if it stays above critical support levels.
Short-Term Correction for Long-Term Gains
Kenshiyesreel’s analysis is about the current price action of ADA with a completed “falling wedge” pattern implying a reversal up.
He also suggests that there can be a short-term dip, which will provide the ideal entry point for purchase at between $0.45 and $0.50, and an ADA may experience selling pressure. The analyst also set a target of $1.2 if the upward trend continues after a pullback.
In the daily chart pattern analysis, recent formation of the golden cross, where the short-term moving average crossed above the long-term moving average, also portrays a bullish pattern.
ADA’s price surged to a high of $0.63 then retraced to $0.5947 and traded above both the 9-day and 21-MA. Possible support levels are around $0.5464 and $0.4663 if the price turns bearish.
The Money Flow Index (MFI) is 69.66, indicating the markets are bullish but the index is getting close to being overbought. When the MFI reaches 70, it could indicate a bearish reversal if buying pressure drops.
The balance between buying strength and overbought risk indicates that ADA may experience short-term volatility, while long-term indicators still suggest a positive outlook.
