Cardano (ADA) is staying in a sideways consolidation, still defending the $1 mark. At the time of publication, ADA was changing hands at $1.48, down 3.65% on the day. On-chain analytics firm, IntoTheBlock notes that Cardano millionaire addresses are actively accumulating despite the flat price action seen for ADA recently. IntoTheBlock notes that the balance held by addresses with 1 to 10 million ADA has increased by 40.65% in just the first month of 2022. It says that these addresses now collectively hold 24.87% of the circulating supply which is presently 33.57 billion ADA. IOHK recently announced that the blockchain’s block size is on track to increase by 11% as part of its network optimization efforts. The total block size will grow to 80 KB from the current size of 72 KB, implying that Cardano’s blocks may now be able to carry more transactions
Key Levels
Resistance Levels: $1.50, $1.35, $1.80
Support Levels: $1.00, $0.92, $0.89
ADA/USD Daily ChartADA is engaging in sideways trading above the near-term bottom at $0.92 while defending the $1.05 mark. Considering that it’s sitting just above key structural support, the consolidation could extend for a while before bulls resume. On the upside, a strong break above the MA 50 at $1.25 could lead to a stronger rebound to $1.64 before a possible test at the MA 200 (at $1.80).
Above here, the next resistance might come in at $2.40. On the flip side, if the price breaks below the $1 mark, negative forces might resurface, sending the ADA price to test the $0.92 bottom and then $0.85 levels.
ADA/USD 4-Hour ChartThe ADA/USD pair is currently consolidating around the 4 hour MA 50, after reaching highs of $1.64 on Jan. 18. Key supports at the $0.92 – $1.03 range is (Jan. 22 bottom/consolidation range floor) expected to hold and keep larger bulls intact for a fresh push higher and renewed probe through key resistances at the MA 200 at $1.22 and then $1.64.
Caution on a break below $0.92/$1.03 pivots might risk deeper pullback towards next key support at $0.80 levels. In brief, although the broad picture remains slightly bearish given the downtrend drawn from the $3.16 September all-time highs, the present consolidation around the $1 support level raises the odds for an upturn. Technically, however, a decisive close above the daily MA 200 at $1.80 is required for a new bullish wave to start.
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