The Cardano price is steady above $0.30, slowing down after a spectacular performance year-to-date. For perspective, the ADA price is up 530 percent, outperforming Ethereum and Bitcoin in that period.
As of writing on Jan 29, the coin is trading at $0.34, stable on the last day and paring losses in the past week.
While contraction of crypto prices, cooling off after three months of steady gains, has been a theme this week, there are more upsides for the smart contracting platform because of upcoming upgrades and the team’s commitment to continue building.
Trackers point to renewed interest in ADA’s trading. On the last day, the average trading volumes are up 11 percent to $2.1 billion. This coincides with yesterday’s gains that spilled over to Jan 29, as visible in the Asian session.
Cardano (ADA) Price Overview
Technically, ADA prices remain bullish. Despite some analysts pointing to peaking prices, there could be more wriggling space for ADA in the next few months.
Presently, there is support forming between the $0.25 and $0.30 zone. These levels coincide with important Fibonacci retracement lines. They may be a foundation for more upsides if buyers flow back in a trend continuation.
On the upside, the coin’s 2021 highs of around $0.40 represent a ceiling.
Capping these two possible reaction levels is the bull flag, an ascending triangle from where prices have been consolidating. As long as ADA/USD prices remain in range with indecisive traders searching for directions, bulls will have the upper hand provided prices trend above $0.30.
Cardano (ADA) Market Movers
Cardano is a smart contracting platform like Ethereum. However, it is special in that the project is peer-reviewed and currently in development.
Two out of the five phases are complete. The team is planning for smart contracting, which will be activated in the Goguen phase. Before this, there will be a Hard Fork Combinator dubbed Mary.
Mary will pave the way for the launching of native tokens in late February 2021. The difference with Ethereum is that projects launching tokens in Cardano will be paying fees, not in ADA, but their native currencies at the latter stages.
Earlier on, project launchers will pay fees in ADA. Although some may argue that this development will restrain ADA bulls, the coin will instead benefit from network effects, pumping prices higher.
At the same time, Cardano is striving for complete decentralization. By the end of Q1 2021, the network will be in the hands of stake pool operators.
Is everyone ready for epoch 257 on 2021-03-31 d=0 day -> #d(0)day when Cardano is completely in the hands of the SPOs!
— Charles Hoskinson (@IOHK_Charles) January 28, 2021
This is not forgetting the filing by Grayscale, registering among many trusts, that of Cardano (ADA). The world’s largest crypto fund actions launch products depending on institutional investors’ demands.
Grayscale Cardano Trust (ADA) Registered in Delaware
Go here: https://t.co/aTQB3KYU3g
Search for Entity Name: Grayscale pic.twitter.com/01gYCb4wk7
— Zaytion (@Zaytion_) January 28, 2021
Their move allows for proper diversification and value capturing outside of Bitcoin and Ethereum.
Cardano Price Prediction
The ADA/USD price remains in range mode inside an ascending triangle, a bull flag.
In this oscillation, buyers are in the driving seat. Specifically, the sharp reversal of the Jan 27 bear bar and today’s confirmation may catalyze more participation.
However, for cautious traders, a break above the bull flag beyond Jan 21 bear bar will nullify bears. Notably, Jan 21 bar is with relatively higher trading volumes, correcting the over-valuation of Jan 7. Noticeably, since the overvaluation of Jan 7, prices have been choppy. Therefore, a breakout above $0.41 will shift the trend back to bulls in line with Q4 2020 price trajectory.
On the more cautious side, losses below $0.25, confirming sellers of Jan 21 will pour cold water on buyers’ prospects, in a move that may see ADA/USD fall back to $0.16. It is the 78.6 percent Fibonacci retracement level of Dec 2020 to Jan 2021 trade range.
Chart courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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