Nick Chong · 5 days ago · 2 min read · Insights via Grayscale Investments
Disclaimer: This article contains technical analysis, which is a methodology for forecasting the direction of prices through the study of past market data, primarily price and volume. The content presented in this article is the opinion of the author. None of the information you read on CryptoSlate should be taken as investment advice. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own diligence and consult with a financial advisor before making any investment decisions.
The Cardano Foundation is making significant strides to push forward the adoption of its native cryptocurrency. The non-profit organization has set up a new release cadence, with new updates and releases expected every week that are meant to improve the network.
The massive amount of work put into the development ADA could soon pay off. According to one of the most prominent technical analysts in the crypto community, Cardano could be about to experience a significant bullish impulse.
Cardano seems ready for liftoff
In a recent tweet, TraderX0 pointed out that the trading pair ADA/BTC could have reached a market bottom. According to the analyst, Cardano has gone through a six-month-long consolidation period that could indicate that the bottom is in.
Throughout the past six months, this cryptocurrency has been contained within a narrow “accumulation range.” This trading zone is defined by the 400 satoshis support level and the 548 satoshis resistance level.
Every time it climbed up to the resistance level, this barrier rejected the price triggering a pullback to the support level. But, when ADA moved down to support, it quickly bounced off to the resistance level.
On Jan. 20, TraderX0 was expecting that ADA could make a quick retracement to the yearly open of 468 satoshis. This correction could increase the probabilities for a significant price movement. Now that Cardano indeed pullback to this area of support, the analysts believe that it could skyrocket over 100% to hit 975 satoshis.
The last time that this cryptocurrency closed above the 200-day MA was in Mar. 09, 2019. Following the break of this significant hurdle, ADA surged over 75 percent. This crypto went from trading at a low 1,097 satoshis to a high of 1,944 satoshis on Apr. 3, 2019.
Despite the bullish perspective, TraderX0 warned that a move below 468 satoshis could invalidate the optimistic outlook. Such a bearish impulse could push ADA into lower lows.
Cardano is looking very strong from a fundamental standpoint. IOHK and the Cardano Foundation are working hard to create an infrastructure that enables decentralized applications on the network. Charles Hoskinson, the CEO of IOHK, is reportedly using his trip to the World Economic Forum in Davos as a “networking opportunity” to identify potential partners that will contribute to the development of ADA.
As the efforts to improve the Cardano protocol continue to increase, its price could also see a significant boost. Only time will tell whether the overhead resistance at 548 satoshis will break, allowing ADA to make higher highs.