Sheldon McIntyre, CMT
Independent Analyst
- Cardano price has returned to 2018 high.
- Some skeptics argue that r/WallStreetBets fanatics have overhyped the token.
- Full decentralization will better position Cardano to challenge major rivals.
Cardano price has built a pennant continuation pattern just below 2018 high. Based on the tightness of the price action in the last three weeks, there is a high probability for a resolution to the upside in the next few days.
Cardano price needs smooth rolling out of smart contracts
The ADA advance over the last year represents a remarkable recovery for the cryptocurrency after plunging almost 99% from 2018 high to the 2020 low. Enabling the rally has been a bullish news role for the Cardano ecosystem. The founder, Charles Hoskinson, has revealed that it will concentrate its efforts on the NFT marketplace and that his team has negotiated with many top-10 NFT marketplaces about porting them to Cardano.
Hoskinson also announced at the Blockchain Africa Conference that Cardano was near “deals and initiatives” through public-private partnerships with several countries in Africa, intending to attract millions of users to the ecosystem.
Moving forward, the key will be whether the Cardano smart contracts update will facilitate blockchain developers to create crowdfunding, auctions, and now famous, collectibles business applications.
The pennant pattern measured move is 270%, and it targets $5.25 in the medium-term, just below the 361.8% Fibonacci extension of the February-March decline at $5.50. If the pattern evolves into a symmetrical triangle, the measured move target is $2.03, close to the 161.8% extension at $2.08, representing a 38% gain from the triangle’s breakout.
ADA/USD weekly chart
A weekly close below the triangle’s lower trend line at $1.12 and the 10-week simple moving average (SMA) at $1.09 opens the possibility for a significant decline. Clear support is situated at the 23.6% retracement of the 2020-2021 advance at $0.53.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Ripple wipes out weekly gains, experts comment on role of Ripple stablecoin
Ripple declined to $0.52 on Thursday, erasing all gains registered earlier this week. Ripple SVP Eric van Miltenburg’s comments on the firm’s stablecoin, and how it is expected to benefit the XRP Ledger and native token XRP have raised concerns among crypto experts.
Hedera HBAR slips nearly 10% after air is cleared on mistaken link with giant BlackRock
HBAR price is down nearly 10% on Thursday, partly erasing gains inspired by the misinterpreted link with BlackRock. Despite the recent correction, Hedera’s price is up 44% in the past seven days.
The reason behind Bonk’s 105% rise and if you should buy now Premium
Bonk price has shot up 105% in the past five weeks. A retracement into $0.0000216 or the $0.0000152 to $0.0000186 imbalance would be a good buying opportunity. Patient investors can expect double-digit gains from BONK that could extend up to 70%.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?