Cardano Price Bullish Moves
In the last several days, most altcoins have mirrored BTC’s volatility and have plunged or retraced in the last 24 hours. Cardano Price which crashed by 9.16% recently is now retracing well.
ADA price is currently trading at $1.36 up 10.43% since yesterday. However, it is still down 44.52% from its all-time high of $2.46 set on May 16. The altcoin is witnessing an increase in the buying volume, it was up by 25% yesterday. Also, it has been garnering institutional interest and big-volume transactions, totaling $20.13 B in the last week and the market cap was up over 4%.
While ADA price has managed to stay above the $1 mark, it is still trying to ditch the bearish momentum. On the weekly charts, it can be seen that it has been consolidating its climb over $1 for a while now.
The $1 level is crucial for ADA because the 200 Moving Average line is exactly at that place. The coin bounced off of this line during the latest drop to defend itself from further decline. Secondly, on the macro Fibonacci chart, the $1 level is within the bull market door support zone (green bar).
As for the upside potential, ADA price looks primed to retest the next supply barrier at $1.45. However, considering the overall market structure the “Ethereum killer” to tag the lower boundary of the supply zone at $1.525, which is roughly 15% from the support level at $1.327.
Now, amidst this extreme volatility and bearish momentum in the broader crypto market, if there was a prediction that said, ADA will surge to $10 in near future. You’d call it crazy. Well, hold on because popular crypto analyst Crytpo Capital Venture gives a solid rationale as to why it is totally possible.
Deja Vu to September 2020
When Cardano took a break from its bull run in September 2020, it made a similar move. ADA consolidated for nearly 3 months within the $0.08 & $0.12 area, with the 200 SMA serving as support. This pause occurred about the time Shelly was released. After that period of consolidation, the currency burst through resistance and went on a bull run, taking ADA to $1.3 before coming to a halt.
With the upcoming Goguen release, ADA seems to be displaying a similar pattern. In the recent bull run, ADA hit $2.3 but when it crashed the token plunged to 1.2 range. Thus, maintaining 200 MA as support. If the pattern is repeated ADA could be consolidated for the coming while. However, when that consolidation ends, ADA could explode.
Well, for now, a new trading range between $1.40 to $1.62 is a possible short-term scenario for Cardano price. However, a daily close over $1.40 will be critical in determining ADA’s particular objectives.