ADA Technical Analysis – February 2022
Cardano (ADA) has been bearish ever since it hit an all-time high in September at $3.10. The price has been declining ever since, and it hit as low as $1.07 in January. This decline meant a decrease of around 65%.
ADA then attempt to rebound, where it increased by more than 50% in just two weeks. Despite the higher high, after hitting resistance at $1.64, the price had another bearish surge, where it declined by an additional 44%. The price recently found support at $0.91, and it had a dominant buying pressure at around $1.
Currently, ADA is experiencing an increase in the price, which could be mainly attributed to the increase in the price of BTC. Nonetheless, ADA remains bearish in the 1-day chart, and the price could keep declining in the coming days, other things equal. Nonetheless, the fear and greed index shows fewer signs of fear due to the recent price movement of ADA.
Key Structures
Support
- $0.91
Resistance
- $1.64
Indicators
Moving Average
The 50-MA of a 1-day chart is still above the price of ADA, indicating that Cardano remains bearish for the long run. However, the 20-MA of a 1-day chart is now below the price, indicating that ADA could keep increasing in the coming days.
The 9-EMA of a 1-day chart is also below the price of ADA and is currently acting as support, indicating that ADA is bullish in the shorter run.
Relative Strength Index
The RSI of a 1-day chart has shown positive signs recently as it went above 50 and suggests a higher buying pressure. Nonetheless, it slightly declined recently, but it has created more room for growth for the price of ADA.
MACD
The MACD line of a 1-day chart is currently above the signal line but below the baseline. This indicates that the momentum is bullish for ADA, but it must remain like this for ADA to reverse the trend.
Fibonacci
The Fibonacci retracement levels suggest that ADA faced high selling pressure at the 38.2% level at a previous support structure. Nonetheless, the price went above that, indicating that 61.8% could prove to be the stronger level of resistance for ADA.
Price Prediction ADA – February 2022
Based on this technical analysis on Cardano (ADA), the price of ADA could face resistance soon in the 1-day chart. After that, the price could keep declining, and it may eventually go below $0.75, other things equal. Nonetheless, considering the fundamentals and the possibility of BTC going even higher in February, altcoins such as Cardano could follow as well. If BTC maintains its nature and the total market cap keeps growing, then we may see ADA aim for $2 eventually.
Latest News for ADA – Affecting Price
After Cardano made smart contracts available, many projects have been working on the Cardano ecosystem, inducing SundaeSwap, one of the most promising decentralized exchanges in the market.
To make the ecosystem much more efficient and accessible, Yoroi Wallet, Cardano’s light wallet, has recently made the dApp connector available. This increases the opportunities for dApps in the Cardano wallet, and it noticeable increases the accessibility of these dApps.
Yoroi Wallet’s desktop extension versions on Windows, MacOS, and Linux browsers now support dApp Connector capabilities! And we’ll begin working with Cardano dApp teams in supporting our latest feature.
Read more about it and what it means for our users: https://t.co/S8IhQSPUlw pic.twitter.com/mOyCSTH6aw
— Yoroi Wallet (@YoroiWallet) February 7, 2022
Understandably, making Cardano dApps more accessible increases the demand for ADA tokens. This consequently increases the price of ADA in the longer run.
The need to launch the Cardano smart contracts has increased the number of Cardano users, despite the price of ADA not performing in the last couple of months.
The number of Cardano wallets has recently surpassed 3 million, which on average means 9,000 wallets per day in 2022. Hence, the number of ADA is constantly increasing despite the price of ADA declining in recent weeks.
🎉3 MILLION #ada WALLETS!🚀#Cardano #CardanoCommunity pic.twitter.com/5iEjq89X8b
— Cardano Community (@Cardano) February 3, 2022
To sum up, ADA could still have quite some gains in February of 2022, even if the technical indicators do not suggest so.