Cardano (ADA): Is It the Rise of Blockchain 3.0?
Developed by Ethereum co-founder Charles Hoskinson, the Cardano platform promises an advancement over the existing Alternative Coin such as Ethereum. The development and modification of this crypto-asset are supervised by the Cardano Foundation.
Using the proof-of-stake protocol has brought this cryptocurrency to the limelight and it has seen quite an up move since its initial release in 2017. Given the recent profit booking scenario in the broader crypto market, we will be covering the technical analysis of ADA to determine a stable projection of its momentum in the trading arena.
Cardano price declines below $1.5
For a short duration since March 2021, the $1.5 benchmark was seen as a resistance and the investors took four attempts to break the resistance. During the brief three months, the prices were stable within the range of $1.5 to $1. The stiff resistance was finally broken on the 6th of May and we witnessed a strong up move.
The profit-booking scenario on ADA coin came much later after the majority of the crypto prices were on a decline. And this is something amazing. While $1.5 acted as a support for a short while, it couldn’t tame the profit booking greed of investors and panic selling by other investors.
Currently, the $1.5 seems like a borderline resistance which can be broken in the intraday momentum. It will be worthwhile to note the price momentum after breaking $1.5. Will it move upwards or succumb to profit-booking is to be speculated.
Will ADA price continue to decline further below $1.2?
The price of Cardano at current levels gets strong support at $1.3 and until it breaks this support with significant weakness, there is only a very small chance of going below the $1.2 range. A decline and up move can never be ruled out, but given the rally for less energy using technology, investors can surely make potions on this cryptocurrency.
According to our price analysis using technical factors, there seems to be no weakness even in the smaller and longer time frames. The $1.2 price seems supported by the buying opportunity presented near the $1 to $1.3 range.
Even RSI or Relative Strength Index hovering around 50 will make the value a buying opportunity considering the strong support at $1.3.
Is there any possibility to regain its momentum back and retest its weekly high above $2?
There is a sustainable momentum in ADA price and as affirmed by the Heiken Ashi chart pattern, the green candles are close to the resistance line. Once it makes a short rally, new investors and traders will be looking for an opportunity to make an entry position in the Cardano cryptocurrency.
The upside of this asset is not limited and is fundamentally subjected to the real action and success of the Cardano platform. ADA is just an asset that uses far less energy to complete its proof-of-stake protocols and as such, it can be a big success in the coming days.
The technical analysis paves way for investment opportunities in the asset as it has a lot of potential to reach a higher price level. Based on our Cardano Prediction, the possibility of an uptrend is not limited to merely $2 but can far exceed one’s expectations. One can surely invest in the ADA cryptocurrency and hold their position in the long run, but invest only what you can bear to lose.