As a seasoned crypto investor with over five years of experience, I’ve seen my fair share of market recoveries and corrections. The recent surge in Bitcoin’s price from $55000 to $68000 was a welcome sight for many altcoins, including Cardano (ADA). However, the price analysis of ADA hints that there is still a key resistance standing in the way before buyers can regain control over this asset.
The native cryptocurrency of the Cardano platform, ADA, hasn’t kept pace with the recent market rally. While Bitcoin soared from $55,000 to $68,000 in just two weeks, boosting many altcoins’ recovery from their June correction, analysis suggests that a significant resistance level remains for Cardano before buyers can take back control of this asset.
Cardano Price Analysis: Potential Breakout Looms as TVL Rises Amid Sideways Trading
In the current market bounceback, the price of Cardano hit a new low of $0.316 on July 5th during the ongoing downtrend. Subsequently, the asset experienced a bullish reversal that propelled its value by approximately 44% to peak at $0.457. However, it couldn’t overcome the downward trendline evident on the daily chart.
The dynamic resistance is part of a channel pattern formation that has carried a stable downtrend in ADA for the past three months. The two parallel trendlines still majorly influence the current price movement in the Cardano coin.
Most large cryptocurrencies have been on an uptrend since last week, but the price of Cardano (ADA) has remained relatively stable, unable to breach its resistance level. This period of consolidation suggests that a turning point is approaching for this altcoin. A break above the resistance will indicate a strong upward trend in the near future, while a break below could signal a downturn.
The Cardano price currently trades at $0.43, while the market cap holds at $15.4 Billion.
In contrast to the unchanged price trend, the Total Value Locked (TVL) in Cardano has experienced a substantial rise, climbing from $172.78 million to $238.5 million—a notable 38% growth. This upswing is often a sign of heightened adoption of decentralized applications (dApps) and the injection of greater capital into these platforms. Evidently, users are becoming more confident in securing their assets within smart contracts.
Based on my extensive experience in analyzing cryptocurrency markets and observing trends, I firmly believe that ADA buyers currently have a golden opportunity to reverse the trendline from being an overhead resistance into a potential support for a significant price surge. If the post-breakout rally continues as expected, ADA could potentially hit $0.52, followed by $0.56. These price points have been key levels in the past and could serve as strong indicators of further upward momentum. My confidence in this prediction comes from having closely monitored market trends for years and recognizing patterns that can lead to profitable opportunities.
If the downward trendline continues, according to Cardano price analysis, there may be another price reversal occurring within the channel pattern.
Technical Indicator:
- RSI: The daily Relative Strength Index Slope at 54% projects a neutral to bullish sentiment among market participants.
- BB Indicator: The uptick in the upper boundary of the Bollinger Band indicator suggests the buyers are active towards this asset.
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2024-07-22 22:10