(duplicate) Cardano(ADA) price analysis – Feb 19,2021
Cardano is currently the fifth-leading cryptocurrency by market cap. Cardano’s symbol is ADA. At $0.903605 per token at the time of writing, Cardano had a market cap of $ 278.53 billion.
Source: https://assetdash.com/Cryptocurrency/cryptos-market-cap
Source：https://www.bybt.com/LiquidationData
As a whole, the liquidity of long positions is still much greater than that of short positions, and the liquidity of long positions is gradually increasing. On the contrary, short positions are decreasing, indicating that the market is still bullish.
Price Analysis
Source: ADA/USD via TradingView
From the daily candlestick chart of ADA, it can be found that after ADA /USD bottomed out at a low point of $0.686 and rebounded from the low point on February 15th, ADA price showed a pattern of a distinct small body of candlestick with a long upper shadow and no lower shadow on the 18th of February which is called a shooting star, a bearish pattern that occurs when the price has continued to increase. During the process of yesterday, therefore an attempt for buyers was made to push the price higher, but then the sellers emerged and the force exceeded it. Since there is no more buying power in the market, a clear bearish signal has been issued at this time. Therefore, the price of ADA will show a certain degree of a trend in the short term.
It can be seen from the MACD chart that the MACD line(blue) has begun to turn downstream and is approaching the signal line (yellow) with almost merged, shown a shrinking state with constantly decreasing the transaction volume. This is a precursor to the formation of a death cross and would show a short-term bearish market.
From a technical perspective, according to the Fibonacci Retracements level that indicates where support and resistance are likely to occur, the ADA price may retrace by 23.6%, a Fibonacci number-the first level of retracement, which is about $0.823042 in the short term, but this level is not particularly stable. If it rebounds from this level, the price will hit the previous peak of around $0.98 and continue rising towards $2. Investors need to pay more attention to the 38.2% level, the second level of the retracement which is about ($0.7247), has strong support near this price. If the future price breaks down from the current level or above, the currency pair may fall to the 50% level ($0.645). If it rebounds from this level, the price range will remain between $0.645 and $0.981.