Cardano’s Rally Turns Cold Feet
Cardano’s rally isn’t as strong as before even as Bitcoin’s broke above $101K. ADA’s price has been consolidating within a narrow range after gaining a third of its value in the past week
Cardano’s price surged above the upper line of the bearish descending wedge pattern it had been trading in for the past few weeks.  ADA has been consolidating in a narrow range with support at $1.05 and resistance at $1.1 as the bulls lose momentum
ADA is trading at $1.1 at the time this analysis was written. The coin may eventually move toward the $1 support zone due to the growing bearish sentiment towards it. The altcoin may fall below $1 to settle at $0.95 if it can’t hold the $1 support line.
Although the technical outlook is pessimistic, on-chain data presents a more positive image. Coinglass reports that long-term holders are becoming more optimistic. There has been a significant outflow of ADA from exchanges this month.
Interestingly, there haven’t been any sizable inflows during this time, indicating that investors are likely holding onto their positions rather than liquidating them.
This pattern suggests that long-term holders are still optimistic and may see the current drop in price as a chance to buy more ADA. The current market sentiment projects that if the bearish phase ends, a rally may be in play as these assets leave exchanges and enter private wallets.
ADA’s Outlook
Cardano’s short-term price action is set up for a further drop, possibly hitting the $1 support level. Nonetheless, many long-term holders prefer to hold rather than sell, and the attitude among buyers is still positive. Investors will watch the technical indicators and on-chain metrics to determine the best entry points given ADA’s price volatility.
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