By Alicia Maher
ADA price spike was caused by the bulls rescuing the coin from the bears over the weekend. Hence, ADA is likely to hit the $1.66 level soon and test the $1.81 levels before this week is over. Similarly, LINK is displaying signals of the start of a bullish move. The technical and on-chain indicators confirm this perspective. Conversely, DOGE is set for a decline for the near term.
Cardano Bulls Regain Control
After breaking down the 55-day SMA and the monthly pivot, the ADA price line entered above the green ascending trend line that usually signals the beginning of a bull rally. ADA remained bullish during the European trading session.
Traders can expect to take profits when the ADA price hits $1.66, but those who still wait can expect to take profit at $1.82 – a price that coincides with the 200-day SMA. However, there is likely to be a slight price correction at the $1.66 level before the surge to the $1.82 level.
ADA/USD 4-hour chart. Source: TradingView
There needs to be a strong buyer interest during the price correction period to prevent the bears from gaining control and pushing the ADA price further down. Should the bears regain complete control, the bulls would be forced to exit their positions, making panic sells and moving ADA price towards the $1.00 region. This short-term possibility could quickly push the RSI into the overbought zone.
Possible Entry Positions In LINK
Despite gaining nearly 90% two months ago to trade at $28.71, LINK has declined and now trades around the $24.11 narrow range. A breakout from this range will see LINK test the $33.63 crucial resistance. A slight price correction should happen once LINK hits this price level.
There was a divergence between the forecasted LINK price from on-chain volume and the actual LINK price between December 5 and January 6. However, the rising on-chain volume proves that a LINK bullish move is imminent. When this bullish move happens, it will lend credence to the analysis from the technical indicators.
LINK/USDT 7-day chart. Source: TradingView
However, if market factors don’t favor Chainlink, it will likely decline and find support at the $24.63 level. If LINK closes below the weekly candlestick, it will establish a lower low and the bullish analysis becomes invalid. This decline could push LINK towards $13.39.
DOGE On The Decline
After hitting the $0.175 support, DOGE remains on the decline and is about to hit the $0.17 support, corresponding to the 20 EMA price level. If the bears remain in control, DOGE will find support at the $0.165, $0.16, and $0.155 levels, respectively. At this $0.155 level, the $0.175 will serve as DOGE’s first crucial resistance when it starts a bullish run.
When it surpasses the $0.175 level, its next crucial resistance will be the $0.811 level which coincides with the 50 EMA. If DOGE should move above this $0.811 level, it is a sign of a strong bullish run. DOGE will have additional momentum over the short term when it crosses the 20 EMA line underneath.