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
Ethena plans to leverage USDe to integrate DeFi, CeFi and traditional finance
Ethena (ENA), a protocol developed on the Ethereum blockchain offering a synthetic stablecoin (USDe) that operates across various DeFi applications, announced on Friday that itsUSDe will integrate DeFi, CeFi and traditional finance as part of its 2024 roadmap.
XRP hovers above $0.50 as Ripple joins alliance to simplify recovery of digital assets
XRP trades around $0.5174 early on Friday, wiping out gains from earlier in the week, as Ripple announced it has joined an alliance to support digital asset recovery alongside Hedera and the Algorand Foundation.
Toncoin price surges as Notcoin gains attention across the crypto community
TON saw a brief rally on Thursday following a recent announcement that Binance and OKX will launch Notcoin (NOT) as the newest token on the Binance launchpool and the OKX Jumpstart.
AI crypto coins rally ahead of ChatGPT creator OpenAI plans to announce Google search competitor on Monday
Barely before the hype around NVIDIA stock gain is over, AI crypto tokens have another bullish catalyst coming their way, which could provide more tailwinds to drive the price of the sector’s tokens.
Bitcoin: Why BTC is close to a bottom
Bitcoin (BTC) price efforts of a recovery this week have been countered by selling pressure during the onset of the American session. However, the downside potential appears to have been capped. Markets have noted significant trading differences between sessions, and while the Asian market showed strength, whatever ground they were able to cover was oftentimes wiped out by traders in the US.