Cardano’s price has taken a bullish momentum after the plunge of December 4. Investors are hoping for a higher high to change the bearish momentum. It may consolidate in this range.
Last week Cardano price crashed more than 25%, now it has bounced up to create a support level of around $1.38. It helps ADA recover at least some of the value after last week’s fall. However, it is now in the Oversold Zone.
The main cause of this downfall is the rumor about potential regulatory dangers following a chance of de-listing from the crypto exchange. Later, the rumor was denied by Charles Hoskinson, the CEO of IOHK. However, the market has reacted negatively.
On the other hand, the network fundamentals are good because it has deployed the SundaeSwap, the first decentralized exchange on the Cardano TestNet. It has smart contract capabilities. The developer team tweets this news and invites the Cardano community to take part in the new exchange to find bugs on the platform.
The price of Cardano was consolidating from September, but it broke the support level in the last week of November. On December 4, it came down to the level of $1.09. However, it changed the momentum and took a bullish turn immediately.
At the time of writing this analysis, the ADA price is $1.46. Now it is creating a support level of around $1.30. If it continues its bullish run, the initial resistance will be around $1.64. RSI is below 38, which does not confirm the bullish trend. Most of the technical tools are neutral.
The Bollinger Band is volatile on the daily chart, and candlesticks are on the lower half of the BB and below the baseline. The Moving Average is also coming down. MACD is also neutral. Most investors believe that it is in the oversold zone, so it may take a short bullish run.
To know more about whether it is the right time to invest or not, read what we think. We project that it is a favorable time to invest because it has come down too low. It has reached a support level where it used to be in April this year. That means you are getting a profitable opportunity at a lower price.
The fundamentals of ADA are good, especially after the deployment of SundaeSwap; it has a great future ahead. Many investors think that it will reach a new ATH in the next year. It starts the bullish run in December.
Please remember that it may go down again. If it goes down, it will reach the level of $0.90. Do not invest more now. On the daily chart, it is forming a bullish pattern. Please wait for a couple of weeks to understand the trend before investing more in ADA. Whether you are a short-term or long-term investor, you should invest in Cardano.