Cardano price targets $2 ahead of protocol upgrade
- Cardano price consolidating in a pennant continuation pattern.
- Musing About the Roadmap shares that IOHK Global will focus on its business in Africa.
- If you want to be part of something big, there is no better choice than Cardano.
Cardano price has been consolidating in a pennant pattern for almost six weeks on significantly lower volume than average. Short term target is $1.88.
The hottest sectors like DeFi and NFTs offer tremendous opportunities
In a new video entitled, Musings About the Roadmap, the CEO of IOHK (Input Output Hong Kong) Global shared how ADA plans to scale in size and in Africa, “we’re going to scale up resources there into the eight figures because there’s a lot of good news coming.”
The much-talked-about Alonzo upgrade will add support to the Cardano blockchain to allow developers to begin constructing on the platform. A functionality that the Ethereum ecosystem already maintains.
Based on the news, it appears that Cardano is only getting started, and considering there are more than 22 million developers worldwide but only 10,000 active dApp (decentralized app) developers, it is evident that there is a tremendous growth opportunity to bring the hottest crypto sectors like DeFi and NFTs to the platform.
Cardano price building on the bullish news roll
The IntoTheBlock In/Out of the Money Around Price (IOMAP) data reveals constructive support between $1.17 and $1.25 with 314.31k addresses buying 7.66 billion ADA. As for resistance, speculators will encounter a minor amount between $1.25 and $1.27 before open skies.
ADA IOMAP chart
A modified version of a measured move of the 270% gain before the pennant pattern rests at $1.88, a gain of 26%, and just below the 161.8% Fibonacci extension of the February-March decline at $1.91. Speculators should also consider the 161.8% extension of the 2018-2020 bear market at $2.26.
Now, using a standard definition of a measured move, ADA could reach $5.50 and easily position it as one of the more prominent cryptocurrencies by market capitalization.
ADA/USD weekly chart
If the pennant pattern resolves to the downside, it will find notable support at the 10-week simple moving average (SMA) at $1.09 and then the 138.2% retracement of the 2020-2021 bull market at $0.96.
Author
Sheldon McIntyre, CMT
Independent Analyst
Sheldon has 24 years of investment experience holding various positions in companies based in the United States and Chile. His core competencies include BRIC and G-10 equity markets, swing and position trading and technical analysis.
