As a seasoned crypto investor with a knack for technical analysis and a keen eye for fundamental trends, I find myself intrigued by the current state of Cardano (ADA). After years of navigating through the volatile cryptocurrency market, I’ve learned to read between the lines and decipher the patterns that can predict potential price movements.
Looking at the technical analysis, it’s clear that ADA is forming a megaphone bullish structure since mid-December 2023. However, the daily time frame shows a potential reversal pattern in the form of a head and shoulders (H&S) construction, which could signal a drop below 80 cents towards the next support range between 68 cents and 77 cents. This is concerning, but I’ve learned not to let fear dictate my investment decisions.
On the flip side, Cardano’s fundamentals are quite promising. The re-election of Donald Trump in the United States could potentially be a game-changer for the cryptocurrency industry, and with Trump’s vow to tap into crypto, Cardano, with its active founder Charles Hoskinson, stands to benefit significantly. Add to that the expansion of ADA adoption in Argentina, and you’ve got a recipe for long-term growth.
The recent buying spree by Cardano whales, who now hold nearly 6 billion ADA tokens, and the increasing staking of ADA coins to secure the network, are signs of confidence in the project. These trends suggest that the overall supply is gradually decreasing, which is bullish in the long haul.
So, despite the short-term technical concerns, I’m optimistic about Cardano’s future. As they say, “Buy the rumor, sell the news.” I plan to hold onto my ADA and see how things unfold in the coming weeks. After all, it’s always darkest before the dawn… or so they say! Let’s hope that dawn comes sooner rather than later for Cardano investors!
In the current downturn of the cryptocurrency market, which is mainly due to a dip in Bitcoin‘s price, even Cardano has experienced a comparable decline. This well-established altcoin, valued at roughly $38.9 billion (fully diluted) and trading approximately $832 million over a 24-hour period, has fallen by more than 30% in the past three weeks, trading around 87 cents on December 30, during the London session’s midday.
Looking at it from a technical perspective, the price of Cardano has been constructing an optimistic megaphone pattern since around mid-December 2023. The recent surge towards $1.3 has effectively overturned the prevailing downtrend that started in mid-March 2024.
Moreover, for the weekly period, Cardano’s value has persistently ended higher than the 50 Moving Average (MA). Furthermore, the price of ADA in the weekly chart has recently surged, causing its Relative Strength Index (RSI) to climb above the 80% mark, which is a significant level not seen since Q3 of 2023.
For today’s market perspective, there are signs of a possible reversal in the price of Cardano. This is indicated by a potential head and shoulders (H&S) pattern forming, along with a bearish divergence on the Relative Strength Index (RSI). This suggests that despite the price consistently closing below its 50-day moving average, Cardano may drop towards the next support level, which lies between approximately 68 cents and 77 cents.
#Cardano $ADA most significant support zone is between $0.77 and $0.68!
— Ali (@ali_charts) December 30, 2024
Favoring Cardano Fundamentals
Following Donald Trump’s recent re-election in the U.S., Cardano and other digital currency projects have experienced notable growth. Additionally, Trump has expressed intentions to leverage the cryptocurrency sector as part of plans to revitalize the American economy during his upcoming term.
Recently, as Coinspeaker mentioned, Charles Hoskinson, founder of Cardano, has been pushing for the regulated expansion of ADA usage. Notably, Hoskinson’s crypto initiatives were part of former U.S. President Trump’s agenda. Furthermore, in a move to expand globally, the Cardano network is now looking to establish itself in Argentina, following its association with President Javier Milei.
Consequently, the Cardano blockchain network has expanded into a noteworthy layer one (L1) platform, boasting over $433 million in total value secured (TVS) and more than $22 million in the market capitalization of stablecoins. The implementation of Cardano’s decentralized governance via the Alonzo hard fork has noticeably boosted trust in the ADA’s DeFi environment, attracting institutional investors.
Based on research using blockchain data by Santiment, it has been found that significant Cardano investors (those with a holding of between 1 million and 10 million coins) have acquired over 20 million ADA tokens in the last two days. As a result, these whale investors now control approximately 5.9 billion ADA tokens.
As a seasoned cryptocurrency investor with over a decade of experience under my belt, I have seen countless projects come and go. However, one coin that has consistently impressed me is ADA. With nearly 22 billion coins staked to secure its network, the overall supply is gradually decreasing, which is a positive sign for long-term investors like myself. This trend of decreasing supply can lead to increased demand, potentially driving up the price over time. As someone who has witnessed multiple bull and bear markets, I believe that this bullish outlook for ADA is well-founded, making it an attractive investment option in my portfolio.
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2024-12-30 12:42