Cardano (ADA) is trading down like the rest of the market. Bulls seem to take a holiday hiatus to recharge for 2022, as most crypto assets record significant losses just three days to the close of the year. At the time of writing, ADA was exchanging hands at $1.416, down 8.34% in the last 24 hours. ADA is up 12.53% in the past seven days. In a Dec. 5 announcement, IOHK, Cardano’s parent company stated that the SundaeSwap DEX was launching as a testnet. In a step ahead, SundaeSwap Labs announced today that the security audit of the SundaeSwap protocol by Runtime Verification (RV) is completed. It also stated that all issues identified by the audit are resolved to the satisfaction of the auditor’s validation process, promising to share with the community once available in full, detailed audit report alongside RV’s blog post on the audit. Stating ”Stay tuned for more news as we enter the new year and head towards the protocol’s mainnet rollout!”
Key Levels
Resistance Levels: $2.10, $1.90, $1.67
Support Levels: $1.35, $1.18, $1.00
ADA/USD Daily ChartADA/USD has retreated from its recent high of $1.637 amid easing positive momentum and is currently found near its daily lows indicating that an immediate upward movement should not be ruled out. However, despite the negativity in the near term, the daily relative strength index (RSI), floating above its midline 50 is reinforcing the pair’s long-term bullish outlook.
If the bulls recover control, initial resistance might be located at the $1.50 level, before pushing towards the $1.60 round figure and the moving average (MA 50). A break over the latter might rekindle the pair’s positive momentum, allowing buyers to target the $1.80 level before focusing on the moving average (MA 200) barrier.
In the short time frame, ADA/USD is trading above 4-hour moving averages (MA 50 and MA 200) despite the bearish short-term outlook, its long-term picture remains positive. For sentiment to change, sellers would need to break below the horizontal support level of $1.350. Right now the pair is correcting and may reach $1.350.
ADA, on the other hand, appears ready to continue consolidating at the $1.40 and $1.50 handle. However, negative risks persist, as evidenced by the moving averages (MAs 50 and 200), which are defending the positive outlook. Cardano may rise towards $2.0 after rebounding from $1.180, establishing the next wave in the uptrend.
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