Cardano Price Forecast for Jan 22: ADA Must Break Through $0.3732 for Confirmation

Cardano must break through the Parabolic SAR resistance to confirm bullish momentum and potentially test higher levels.

Notably, Cardano (ADA) has seen some notable movement in the past 24 hours. After initially staying flat, the price went through a W-shaped breakdown and tried to recover, but saw another drop to $0.3484.

From there, ADA saw a rebound, reaching a peak of $0.372 before stabilizing and entering a phase of sideways movement. The daily range shows this fluctuation, with the coin moving between a low of $0.3484 and a high of $0.372. The 24-hour trading volume remains robust at $656 million, albeit down by over 2%.

Despite the recent volatility, Cardano is showing resilience, as evidenced by the 1.8% surge within 24 hours. However, the broader trend over the past week reveals a slight decline, with a 7-day drop of 8.5%. Over the past 30 days, Cardano has seen only a modest decline, down by 0.7%. Can this consolidation phase lead to further price stability or a breakout?

Can Cardano Breakout?

In the 4-hour Cardano chart, the price is currently testing resistance at the Parabolic SAR, indicated by the blue dotted line at $0.3732 above the price. This suggests that Cardano is encountering resistance at this level, and the price will need to break above the Parabolic SAR to confirm bullish momentum.

Cardano PredictionIf the price can surpass this resistance, it could signal a potential continuation of the uptrend, testing higher levels at $0.39 and beyond. Additionally, the current price action also shows bullish indications, with the MACD line above the signal line.

The Parabolic SAR, combined with the MACD crossover, highlights the ongoing struggle between bulls and bears. The MACD, which shows a negative value of 0.00172, signals a lack of momentum for a price rally, unless it can surge to the positive zone. Ultimately, the Parabolic SAR must be breached for a strong bullish movement.

ADA Liquidation Data

The Cardano liquidation chart from CoinGlass provides further insights into market sentiment and risk for ADA traders. Over the past 24 hours, the total liquidation around Cardano has amounted to approximately $1.61 million.

Cardano LiquidationThe majority of this is tied to short positions, with around $457.76K in short liquidations, while long liquidations have accounted for the bigger portion, at $1.15M. The hourly liquidation data also shows significant short liquidations, amounting to $676.01, with no long positions liquidated during this period.

At the 12-hour and 4-hour levels, there are still notable short positions facing liquidations, with the 12-hour chart showing $338.00K in short liquidations, and the 4-hour chart reflecting a smaller amount of $4.08K