Cardano safe for long-term investment? The altcoin market is bleeding after the Terra crash and the liquidity crisis in staking Ethereum tokens. However, the ADA price has started to fluctuate sharply in recent days. Tony Montpeirous, FXStreet analyst, says that the ADA chart offers opportunities for scalp trading.
- 1 Alongside other altcoin projects, why is ADA important this week?
- 2 Cardano (ADA) forms triangle formation
- 3 Share this:
Alongside other altcoin projects, why is ADA important this week?
According to the analyst, Cardano price is now giving very dangerous signals for long-term investors. In the following days, the ADA price offers more successful trades with a scalping style trading strategy.
Cardano price has been fluctuating in recent weeks. Thus, it has prepared a very volatile ground for the coming days. The prolonged battle for control of the ground is unexpected given that other altcoins are starting to rise higher to make up for the losses from the June 13 sell-off. Now Cardano is facing a resistance limiting the upside potential at $0.68.
According to the analyst, it is possible for Cardano to rise 35% without invalidating the macro thesis. Meanwhile, scalp traders have the option to take positions in either direction of the trend. If there is a break above $0.51, Cardano is targeting the June 13 high of $0.66. However, the bears are likely to watch the current ADA price and hope for a dip below $0.41 to start the long-awaited decline below $0.20.
Long-term traders may consider staying away from the market or adopting the scalpe trading mentality. At $0.93, the downtrend remains macro invalid. If the bulls can break this level and push prices well above $3.00, they can make up for all their losses this year. If the analyst’s scenario materializes, it would represent a 550% increase from the current ADA price. On the other hand, it is important to follow the triangle formation shaped on the ADA chart in the technical part.
Cardano (ADA) forms triangle formation
AmkNews.com As we covered in our analysis, on June 19, Bitcoin dropped from $ 20,400. The leading cryptocurrency found bottom support at $17,700. Meanwhile, the altcoin market was also bearish, with ADA slipping from $0.479 to $0.43.
So, will Sunday bring another bullish move instead of this bearish one? The basis for this sentiment is the bullish momentum that ADA has sustained over the past week. Meanwhile, the ADA chart formed an ascending triangle. At the same time, ADA price is finding support at the lows of the $0.44 (yellow) range. Currently trading at $0.5169, ADA is targeting the lesser $0.542 point, according to analyst Akashnath S.
Besides, the triangle formation and bottom alignment converge, suggesting a correct move at $0.54-0.55. However, there is one thing that buyers should pay attention to. Lack of demand was a concern, but price action indicated that a move to $0.54 was in preparation. If ADA breaks the $0.5 resistance zone and retests it as support in the coming hours/days, ADA price will present a short-term buying opportunity, with a $0.54 take profit level.
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