Reflecting the indirection of the crypto market, the Cardano price is one of the high market cap coins that is ranging within tight channels.
Gauged from technical charts and movement in the last few days, it appears that there is no real determination for buyers to drive prices higher.
Week-to-date, the ADA/USD price is up four percent but down two percent in the past 24 hours. The coin is also down versus BTC and ETH, losing roughly three percent on the last day of trading.
Despite the lull, the Cardano price is trading within a bullish breakout pattern. With bullish news, there could be more room for the upside in the medium-term.
Cardano (ADA) Price Overview
Buyers may be optimistic, however, they can’t seem to sustain higher prices.
After ADA bulls pushed prices to $0.19 on Nov 24, there was no follow-through. The ADA/USD pair has since retested the main support level at $0.13, falling to $0.11 even before December.
Gains have been marginal in the last few days as bulls encouragingly support prices above key support lines.
As long as buyers keep the price above $0.13—in the immediate term, buyers have a chance.
The resulting accumulation could be an impetus for more gains above the bull flag, breaking above the upper resistance level towards $0.19 in a trend continuation pattern.
Cardano (ADA) Market Movers
Like Ethereum, Cardano is a smart contracting platform.
However, it is different from the rest. The network development is guided by peer-reviewed research, and its developers released the first white paper detailing a Proof-of-Stake side-chain.
Cardano is working to transit to the third phase, following the activation of Shelley and staking.
The next stage is Goguen; which introduces financial smart contracts in a base layer Charles Hoskinson said will be more decentralized than Bitcoin.
Already, steps towards this hard fork are on live following the activation of the first Hard fork combinator (HFC) in early December.
An HFC is more like a soft fork made to ensure easy and smooth code updates by sequentially combing two protocols into one. The tentative date for Goguen activation is set for Q1 2021.
In preparation, Cardano–through Project Catalyst, will fund several DeFi projects, including Liqwid.
The Charles Hoskinson-led project has also partnered with the Nervos Network to enhance smart contract security.
Cardano (ADA) Price Prediction
The ADA price is trading within a bullish break out pattern following the rally in late November 2020.
Presently, ADA/USD is stuck in a consolidation after the retest that forced back prices to $10.11 and $0.13, respectively. These marked the 61.8 and 50 percent Fibonacci retracement levels.
Although buyers are in control, a break above the bull flag will set in motion a rally ideally back to $0.19 in a trend continuation pattern. This ought to be with high trading volumes, preferably exceeding those of Nov 24 (Binance data).
Also, the rally will nullify bears of late November. The ADA/USD price is still ranging inside Nov 24 to 26 bars with light trading volumes. A lift-off above $0.19, therefore, cancels bear pressure marked by the three high-volume candlesticks.
On the other hand, a break below the bull flag will temper sellers aiming for $0.11 in the immediate term.
Chart Courtesy of Trading View
Disclaimer: Opinions are those of the author, and are not financial advice. Do your research
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