Cardano is a top project, no doubt.
At spot rates, the protocol is worth more than established traditional companies with years of experience.
The sharp spike in Cardano’s valuation is more about its value proposition: Create a better alternative of Ethereum and dominate being a world’s computer.
Spearheading Cardano is their quest for science and peer review. Therefore, it is not surprising that Cardano’s code is peer-reviewed and built from scratch.
Cardano Market Performance and ADA Price Status
With all the flowers, Cardano is still in development.
Their recent milestone is the activation of smart contracts and accelerating their ambitious goal of taking on Ethereum by funding prospective dApps.
To ensure tamper-proof relay of external data to smart contracts, Cardano tapped into Chainlink.
Even so, while BTC gallops higher, technical candlestick arrangement points to weakness in ADA prices.
For example, weeks later, ADA prices are far from their all-time highs.
Traders were calling for a rally to new all-time highs even to $5 and beyond. However, this hasn’t been the case, a cause of frustration but an opportunity for traders.
For what Cardano seeks to achieve, ADA prices may be undervalued—a reason that’s attractive to value traders.
Besides, the crypto market is rising. Therefore, this tide may provide even more opportunities for swing traders hopeful for a retest of all-time highs in buy trend continuation.
Thus far, ADA prices find strong headwinds at $2.3, a critical resistance level.
The good news is that prices are trending higher within a rising wedge, which is bullish.
A high volume, wide-ranging bull bar closing above $2.3 may see ADA prices expand to $3 as traders flow back.
Is ADA About To Breakout To $2.8?
This is the view of one trader on Twitter.
He observes that ADA prices are in range mode at spot levels. In the 4HR chart, ADA/USDT prices are capped to the downside.
— Elite Crypto Gems (@EliteCryptoLM) October 5, 2021
However, the analyst expects a break out above the limiting trend line towards $2.5 and later $2.8.
The pace of ADA price expansion to $2.5 and higher, nonetheless, depends on the breakout volumes.
As mentioned higher, he cites the importance of participation as the fuel for $2.8 and even bulls reclaiming $3 in the next few days/weeks.
ADA/BTC Sliding Lower but Dapps on Cardano Will Be a GameChanger
Meanwhile, another trader compares the performance of ADA and BTC.
He mentions the current draw-down for coins paired against BTC.
For the questions on $ADA its looking to retest the long term uptrend against BTC.
With this Bitcoin move other coins will do ok in USD but suffer in SATs. Once $BTC stabilises we will see others fly, IF we see Dapps on Cardano soon in this market that could be a big ⏰👀🚀 pic.twitter.com/4ntqJOPp71
— Paul 🇮🇪 ₳ +₿ = 😃 (@TradingWithPaul) October 6, 2021
The resurgence of Bitcoin and the expectation of even more gains in Q4 2021 may see ADA lose.
Even so, there might be a recovery versus USDT, especially if projects begin launching on Cardano.
The activation of several high-profile DeFi or NFT dApps on Cardano plus stabilization of BTC prices would help ignite demand. In that case, the trader notes, ADA may soar higher in USDT terms.
Time to Swing Cardano (ADA)?
From the ADA performance in the 2D chart, another trader thinks the coin would edge higher.
Accordingly, the ADA/USDT pair provides safe entries for traders to swing.
Per the trader’s analysis, ADA may rise to $2.6 once bulls close above $2.3 and the primary resistance trend line of the wedge.
The $1.9 zone, on the lower end, provides support.
A close below this level and the wedge invalidates the uptrend, allowing bears of September back.
Charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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