Cardano smart contracts are here—a significant fundamental catalyst. It is pretty much why ADA rose over 10X in the last year or so.
With smart contracts, there will be limitless possibilities from DeFi to NFTs to everything a selective developer leaning on quality and speed would want.
Cardano Market Performance and Price Status
But then again, for the trader, ADA has been underwhelming. If anything, ADA prices are trending within a tight range, even printing lower as the excitement around smart contracts fades.
There were talks of a moon swing, a tear higher, above $3 in a buy trend continuation pattern, but that has since fizzled away.
What’s remains is a shaky coin with strong fundamentals trying to stay afloat.
The last two days have been a relief for Cardano traders. Even still, there are flashing lights, signaling weakness.
Cardano bulls have yet to revise losses and are still within a bear breakout pattern, as visible in the daily chart. Specifically, ADA prices are trending below the 20-day moving average clear in the daily chart.
Besides, the upswing of the last two days has relatively low trading volumes meaning participation is low. It seems that those who are banking for a sharp recovery are cautious, holding their cards close to their chest in apprehension.
Therefore, although Cardano bulls are optimistic, the possibility of bear trend continuation mirroring the draw-down of September 7—the pacesetter—and the confirmation of September 20 remains high.
If anything, ADA prices contracting below $1.9 and unwinding gains of September 22 and 23 would most likely trigger another wave of selling pressure. In that case, ADA may tank to $1.5.
But what do traders think?
ADA/USDT Struggling in the Face of Bears
Presently, one trader observes, ADA/USDT prices are trending lower as per developments in the 4HR chart.
This counters the bullish outlook of most traders who expect ADA to show strength, receiving tailwinds from fundamental events.
At the time of writing, ADA is trending below $2.5 and the primary resistance trend line.
If Cardano bulls fail to close above this line, it will sync with the primary trend, printing lower. In that case, ADA may drop below this week’s lows at $1.9 towards $1.5, as mentioned earlier.
Cardano Bull Flag, open for a Race Towards $4
In Trading View, one trader thinks ADA prices can race and unwind current losses to register an all-time high at $4 in the subsequent trading sessions.
From the 2-Day chart of the ADA/USDT, the analyst picks out a double-bar bullish reversal pattern. Moreover, there is a hidden bullish divergence MACD, further cementing his bullish outlook.
With the bullish engulfing bull bar finding support from around $1.90-$2 zone, the trader is confident of ADA’s prospects and is now rooting for buyers to take charge, clearing above the key resistance trend line.
As ADA waves, prices are ranging inside a bull flag. Despite recent losses, he observes that buyers are in control and would likely close above the resistance trend line in a buy trend continuation of July and August 2021. His immediate target lies beyond $3—an all-time high—at $4.
Cup-and-Handle Formation to Pump ADA 15X
While $4 is ambitious in light of the present candlestick arrangement, another trader thinks ADA may float to $30—the last stage of the Elliot Wave.
From the ADA/USDT weekly chart, the coin may quickly soar to $30, more than 10X its all-time high. The spring is the expected recovery and the breakout anchored by the broad multi-month round bottom.
Charts courtesy of Trading View
Disclosure: Opinion is that of the author. Do your own research.
This Defendant Wants a Judge to Declare Crypto Trading as Gambling in New York
Bitcoin Technical indicator at the “Fire Sale” Zone
Fidelity Investment Boss Says the Crypto Winter Is the Right Time to “Double Down”
How Ethereum’s Layer-2 Optimism Lost $17 million to a Hacker
New York Stablecoin Requirements Demand USDT to be Transparent
Price Analysis1 year ago
Sushiswap price adds 14% week-to-date, SUSHI rallies 40X in 7 Months
Learn2 years ago
Is Polkadot (DOT) A Good Investment?
Learn2 years ago
Yearn Finance Explained: A Simplified Guide to YFI
News2 years ago
How Will Bitcoin React if Either Trump or Biden Wins?
Price Analysis2 years ago
China FUD, Path back to $13k or $20k?
Learn2 years ago
Is Chainlink (LINK) A Good Investment?