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Cardano Bullish Forecasts

Steve Miley trader
Updated 18 Jan 2023

Cardano (ADA) has produced bullish, intermediate-term technical signals on the chart over the past 1-2 weeks to begin 2023. This sets up a still more robust recovery phase for the balance of January and possibly on into the first quarter of the year.

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YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Cardano Bullish Reversal Signals

The end of 2022 and the start of 2023 saw Cardano defend the bottom of a falling wedge, technical chart formation, rebounding from the bear market, cycle low at 0.2392, dismissing the previously more bearish outlook for ADA.

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The initial push up to close the latter 2022 bear gap was a small positive, securing a small base, which was then reinforced through early January by an impulsive move still higher.

The more recent and aggressive bullish extension to overcome chart resistance and Dow Theory swing highs at 0.3205/3290, alongside the reversal above the downtrend line from August 2022, has signalled a more robust and sustainable, intermediate-term bullish reversal and recovery phase. This has been further assisted by the more recent advance since the release last Thursday of the US CPI data, which drove broader global riskier assets higher, together with the wider cryptocurrency markets, with Cardano rallying to 0.3696.

Cardano Upside Prospects and Forecasts

We see the immediate upside threat for an ADA retest of the recently set, 2023 recovery high at 0.3696. This would then open up a general challenge towards chart resistances from the pre-FTX collapse peaks from November/ October at 0.4377/99. The threat further into the first quarter would be for an even more robust recovery for Cardano to challenge swing resistance points at 0.5947 and 0.6881. The overshoot threat for Q1 would even be for a move closer to 0.9050.

Cardano Downside Corrections Risks

However, a Cardano push back down below impulse chart support at 0.3069 would allow for a corrective threat down towards the 0.2744/.2723 support area, and potentially even open the door for a retest of the bear market, cycle low at 0.2392.


YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Steve has 29 years of financial market experience including 3 years at Credit Suisse and 15 years at Merril Lynch. Steve is the Academic Dean for The London School of Wealth Management and has won many awards from Technical Analyst Magazine.