Cardano is not moving in the way investors would like and is stuck in a range between $0.25 and $0.45. Although discouraging, this period could be the game changer, allowing investors – both retail and institution accumulate the competitive smart contracts token.
ADA Price Bleeding Continues
ADA is down 0.1% to $0.2895 with $112 million in volume coming in, supported by $10 billion in market capitalization.
A depressed market structure became the order of the day following the climb to $0.37 in July after the court ruled that programmatic sales of XRP are not securities.
Recall the Securities and Exchange Commission (SEC) alleged in June that ADA along with 63 other cryptos like Polygon (MATIC), and Solana (SOL) are securities.
Therefore, with the court’s ruling favoring XRP, Cardano witnessed a price pump from lows around $0.25 to highs of $037 as investors sought exposure to other tokens the SEC had deemed to be operating illegally as securities.
Nevertheless, the dilapidated crypto market structure in addition to dampening the uptrend has seen Cardano trim most of the gains to trade around $0.2895 on Tuesday.
Now, holding below all three moving averages, including the 200-day Exponential Moving Average (EMA) (purple) at $0.343, the 100-day EMA (blue) at $0.316 and the 50-day EMA (red) at $303, implies that declines are likely to carry on.
A sell signal from the Moving Average Convergence Divergence (MACD) indicator reveals a strong bearish grip. As the momentum indicator drops further below the mean line, a sell-off brews, leaving ADA vulnerable to losses eyeing support at $0.25.
Trading the MACD requires traders to look out for the MACD line in blue to flip below the signal line in red to validate the weakening market structure.
Breaking below the upper ascending trendline on the chart pushed ADA price over the edge but the lower trendline came in handy. In this case, holding Cardano above the lower trendline is paramount to a trend reversal. At the same time, a break below it may mean losses to $0.25 and possibly extending to $0.20.
Cardano To Take Off After Accumulation
A bullish outlook cannot be ruled out just yet, especially with the possibility of a knee-jerk rebound above the short-term resistance at $0.3.
A sustained break and hold above the 50-day EMA would imply that sellers are losing grip and bulls are getting ready to take control of the narrative for gains above $0.45 – the July hurdle.
According to crypto analyst and trader Ali, Cardano appears to be mimicking its oscillations between 2018 and 2020 “between $0.10 and $0.028 for 665 days.”
Following this consolidation that allowed for accumulation among investors, ADA took off to a “2,985% bull run.”
In this article it’s says:
“In short, most XRP transactions might still be securities transactions.”
This is NOT true and constitutes total FUD. Even if Judge Torres agrees to certify the interlocutory appeal and stay the case (HUGE ASSUMPTIONS, especially the stay), it would… https://t.co/o7VLWbszUo pic.twitter.com/5T0H57UC8A
— John E Deaton (@JohnEDeaton1) August 11, 2023
Ali argues that crypto markets need patience in times such as this and “those willing to wait will be rewarded. If history is to repeat itself Cardano is staring at a massive breakout in early 2024.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/traders-stacking-up-on-cardano-implores-ada-price-breakout-to-1/