Money

Cardano to the moon and beyond has some warnings attached

Disclaimer: The findings in the following analysis are the sole opinions of the author and should not be taken as investment advice.

Ready to lead the charge for a variety of tokens dubbed ‘Ethereum Killers’, Cardano certainly has a good case for itself. With dozens of projects already in development after Alonzo’s hard fork, sentiment is likely to be optimistic going forward.

However, ADA appeared to be fighting some selling pressure at press time. As highlighted in a previous article, a distribution phase was looming as investors secured their returns. This article will discuss what ADA must do to maintain its bullish thesis and deny a bearish outlook.

At the time of writing, ADA was valued at $ 2.47 with a market capitalization of $ 78.89 billion.

Cardano daily chart

Source: ADA / USD, TradingView

Despite some lower lows set by ADA over the past week, sellers respected the 38.2% Fibonacci level that had not been broken. If ADA remains in this trend while some of its indicators reestablish their positions, the next bull cycle would be in effect.

Before the end of the fourth quarter of 2021, the long-term targets at the Fibonacci levels of 138.2% and 161.8% could be achievable, as long as the projects built on the Cardano platform face little to no setbacks.

However, it is imperative that ADA remains above key levels for this outcome. Furthermore, a close below the 50% Fibonacci level and $ 1.88 would open the floodgates for an extended market decline.

Reasoning

The RSI was in stabilization mode after steadily declining from overbought levels. Such a correction was healthy before the ADA began its next leg up. While the MACD has also fallen from record highs, it has yet to close below equilibrium, a good sign.

Finally, the Chaikin cash flow has seen higher lows since the beginning of April. Despite the fact that the index threatened to move below the midline due to weak capital inflows, it can be expected to rebound from its lower sloping trend line.

conclusion

To assert itself above the 138.2% and 161.8% Fibonacci levels, the ADA must stay above a few key areas. This would allow its indicators to regain bullish positions after the selling pressure subsides.

Until then, the 38.2% Fibonacci level would be key to the ADA trajectory.

This is a machine translation of our English version.

TAMMY SEWELL

Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: Tammy@oicanadian.com Phone: +1 513-209-1700

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