Cardano Hits Bottom? What You Should Consider Before Rushing Into ADA
17 Gennaio 2022 - 11:00PM
NEWSBTC
Cardano managed to enter the top 5 cryptocurrencies by market cap
and take the number 4 position, not including USDT. The
cryptocurrency has seen important appreciation in 24 hours (5%) and
during the past week (25%) following an explosion in its ecosystem.
Related Reading | Cardano’s Ecosystem Explodes, Why ADA Could Be
Quick To Resume Bullish Trend As of press time, ADA trades at $1.47
as it bounces up its lows in the 4-hour chart. Cardano was heavily
impacted by recent months price action in the crypto market. After
reaching an all-time high north of $2,20, the cryptocurrency lagged
and dipped back into its critical support zone just above $1.
Economist Michaël van de Poppe believes ADA has begun an upward
trend after bouncing back from the lows with continuation but could
yet present a buying opportunity. The analyst has been bullish on
ADA for a while and believes $1 will remain critical support. As
seen below, Cardano (ADA) has constantly bounce back from these
levels on every major dropped including March and July 2021 when
the entire crypto market saw a crash of over 50%. At the moment,
ADA’s price approaches resistance near $1.53 and could yet give
traders an opportunity to take a long position. Van de Poppe
claimed the following on Cardano’s potential future price action:
If you want to get into Cardano and you didn’t really get the
chance you were looking for (…). In that case, we are looking at
long entries at the lower boundaries so around $1.3. We are looking
at support here on a daily timeframe. On lower timeframes, van de
Poppe believes traders shouldn’t be chasing positions, but $1.41
could provide an “aggressive” opportunity to take a long. In that
sense, Cardano must break above $1.55 to continue its bullish
momentum. Cardano Experiences Ecosystem Explosion Even if ADA
manages to break above the aforementioned resistance, the price
could form a consolidation zone above those levels which could
present a more efficient opportunity to take a long position.
Should Cardano sustain those levels, its price could start
targeting former highs at around $2 and $2.33. Although Cardano has
been trading with more strength than some of the other
cryptocurrencies in the market, Bitcoin must maintain its current
levels or trend upside to prevent ADA for re-testing its support
levels. At the moment, Bitcoin seems to be leaning for more
downside for the short term. ADA’s recent bullish price action
seems to have been driven due to a growth in the number of projects
building on the network. As NewsBTC reported a week ago, there are
currently over 200 projects leveraging the network smart contract
capabilities. Related Reading | Cardano Set To Enter The Babbage
Era After Alonzo HFC Milestone
Grafico Azioni Cardano (COIN:ADAUSD)
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