Cardano Price Analysis for January, 31th – ADA: All Good Regardless of Correction
By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
By Friday, the ADA cryptocurrency has slumped into a correction, which, after the robust and stable growth in January, looks logical. The cryptocurrency is generally trading around $0.0541.
On D1, analyzing the long-term technical picture of the Cardano development, we can notice that the general trend looks like a quite wide narrowing channel. After a bounce off the lower border, a convergence on the MACD, a breakout of the resistance line of the previous channel, the quotations started developing an uptrend. The aim of the trend is the upper border of the general channel — the level of $0.1040.
On H4, we can see an ascending channel in detail. The quotations have broken out the resistance line of the channel of growth, which signifies confidence in further rising. On the Stochastic, we can notice the lines enter the overbought area, which may precede a short-term decline. The aim of such a decline may be the support line of the channel near 23.6% ($0.0484) Fibo. After such falling, we should expect a new impulse of growth to the levels of 38.2% ($0.0594) and 50.0% ($0.0683).
It seems like the fundamental background for the Cardano becomes more and more optimistic, though nothing is known for certain.
It might be that the market is waiting for the rumors about the company’s partnership with PwC to confirm. The head of IOHK, developing the Cardano, has said that in the nearest future, that the company is soon expecting a detailed strategy of the project rebranding from an international consulting organization. This is necessary to make a well-known brand out of the Cardano and finally turn it into a successful commercial project.
In the last few days, the Cardano has returned to the top-ten most demanded cryptocurrencies. Its intraday trading volume was $176 million, which means significant growth of 150%.
It is known that some 40% of the ADA emission belong to 39 addresses. However, there is nothing to worry about: a similar situation is quite the same with the BTC and other key altcoins.
Disclaimer: Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.
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Dmitriy Gurkovskiy, Khareem Sudlow