On 29th December 2021, Cardano was selling at 1.46 dollars. Sellers stepped in at 1.6 dollars and drove the price downwards to 1.46 dollars. Although this could be a significant support point, Cardano’s slump on larger timescales was still ongoing. However, there are some positive indicators. A strong Bitcoin in 2022 might see ADA snap out of its slump, as it previously did at the onset of 2021.
If we take the price graph into account, the activity over the last two weeks could be comparable to the fluctuations in price during June and May 2021. Some variations are there considering the circumstances. The following are the distinctions: An enormous rise in May was succeeded by a sharp sell-off. After reaching 3 dollars in September, the selling spree was intense until it reached 1.9 dollars, followed by a sluggish decrease. Then, a further furious sell-off continued throughout November to finally hit 1 dollar.
Reason
Although the idea cannot be ruled out yet, the differences are significant. However, the 1.46 dollar zone is a solid support level that is unlikely to be surpassed in a single effort. The Awesome Oscillator went ahead of the ‘0 line’ to signal a strong flip suggesting a change in momentum.
ADA was unexpected to soar beyond 1.50 dollars without robust demand. The CMF, on the other hand, oscillated unsteadily around -0.05 and +0.05. They claimed that interest had not yet arrived among the people.
Conclusion
As seen on the graphs, ADA might face resistance around the 1.5 dollar range and produce a bigger bottom near 1.3 dollars, before moving higher in the following weeks. It’s doubtful if this will happen by the 11th of January, but there have been some noticeable price action parallels worth examining for analysts.
