Sheldon McIntyre, CMT
Independent Analyst
- 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.
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
Aptos holders gear up for likely APT price decline ahead of $195 million token unlock
Aptos, a Layer 1 blockchain token, is heading towards a scheduled token unlock event. on Tuesday, December 12, 24.8 million APT tokens worth $195 million will be unlocked. The token unlock is a key event as it is likely to influence APT price.
Synthetix price shows continued strength as SNX supply on exchanges drops
Synthetix, a decentralized asset issuance protocol, is used for staking rewards and community voting. The token yielded nearly 17% weekly gains for holders, and on-chain metrics point to a continued bullish outlook for SNX.
Pro-XRP attorney slams former SEC Chair, XRP price plummets in market wide crash
The SEC v. Ripple lawsuit is making headlines again as pro-XRP attorney John Deaton criticizes former SEC Chair Jay Clayton for his comments on the court ruling. Clayton believes that the initial issuance of XRP tokens was a securities transaction in the capital raising phase.
Bitcoin braces for volatility-filled week with November CPI data release, Fed decision
Bitcoin is likely to experience heightened volatility this week with the upcoming release of November CPI data. BTC price suffered a correction of nearly 4% in the past 24 hours, ahead of the key macroeconomic events scheduled for the week.
BTC uptrend capped by supply barrier at $43,860 as FOMO fails to suffice
Bitcoin (BTC) price uptrend has sustained since mid-September on the weekly timeframe but has since slowed down following the lack of tailwinds to drive the market. All along, narratives, themes and speculation were the driving factors, inspiring a wave of fear of missing out (FOMO) in the market. As it turns out, FOMO is not enough anymore.