Good day, colleagues!
Today we’re going to talk about Cardano (ADA), one of the most promising coins on the market. I’d like to conduct a small experiment and discuss the potential price movement scenario for this coin. We’ll come back to it in five months and see how it performed and where the price ended up.
Let’s get started!
I took the weekly chart (each Japanese candlesticks is one week) to analyze the market from a long-term perspective and to see if my predictions were correct. First of all, we need to pay attention to the fact that the trend is downward and we are currently below the resistance line. Additionally, an important level was broken at the $0.40 mark and the coin is currently trying to return above the $0.45 level. However, the buying volume is not sufficient for this, which will lead to a price drop to around $0.29-$0.24 per coin. Of course, the price will bounce back from this level and begin to rise, but this will only happen after the price is firmly above the $0.40 level.
My recommendation: Wait for the price to drop to the $0.29-$0.24 level before buying, with the potential for growth up to the $0.40 mark. Only after breaking and establishing this level can we consider a bullish trend.
