Source: Yahoo Finance
Cardano (ADA/USD) experienced a very sharp dip downwards to $0.3326 from $0.3491 yesterday. However, the price has been steadily climbing up since then. The price is at $0.3686 at the time of writing. At the time of the sharp decline, the Relative Strength Index (RSI) was at 19, and subsequently climbed up to a high of 86. The present RSI is at 47.
According to analyst Lorenzo Stroe from FX Street, the bulls had defended the $0.33 level well, which coincides the 12-Exponential Moving Average (EMA). However, he opines that for the bulls to fully take the rein, ADA/USD needs to climb above $0.38.
If the bulls are successful, analyst Rakesh Upadhyay from Investing.com believes that the next psychological resistance would be $0.50. However, he cautions that the negative divergence of the RSI indicates that the bulls’ may be slowing down. Should the price dip below $0.34, a drop to the 20-day EMA of $0.30 is possible. If this level is breached, a further correction to $0.26 is on the cards.
In the markets, there is a sense of fresh optimism in the market as a new U.S. president is inaugurated in the market. Traders are now anticipating the launch of the Biden stimulus package to drive the economy. Although it remains to be seen just how much of the proposed $1.9 trillion package can actually materialise, the allure of a new beginning in the U.S. is evident in the market, as portrayed by the gains of major indices on Wall Street yesterday. Overall, a higher risk-on sentiment might not be beneficial to cryptocurrencies, so let’s wait to see how things unfold.
ADA/USD (as of Jan 21, 2021, 9.50 a.m., GMT +8) - $0.3686
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