Bitcoin (BTC/USD) was 12 percent up and Ethereum (ETH/USD) was 10% also in the green compared to last week’s close – while Cardano native token ADA (ADA/USD) was trading at exactly the same level as it was when the last week begun. There was that breakthrough Cardano Summit that brought us a host of new announcements, partnerships and altogether more than 40 speeches on the last weekend of September and immediately after it finished, the CEO Charles Hoskinson has gone on his holiday (when he returns, he will be visiting many African countries in his quest to get his blockchain widely adopted). It might seem like the price action of Cardano has gone on holiday also, or at the very least it decided to kind of stay idle and take a well-deserved rest after a busy month of breaking the ATH above $3 and subsequently getting a correction all the way down to below $2.
Currently the 3rd biggest cryptocurrency by marketcap ($71B according to coingecko.com) is trading around $2.20, its price action stuck right between the 50 and 100MA.
BIG MOVE AHEAD
The price still has not had a clean break out from the declining triangle that I showed you last week, not that I was expecting it to. Since my last roundup of Cardano, we had a couple of tests of the bottom of the triangle (28th and 29th Sep), and the support area built up around the 2$ line was strong enough to prevent any farther decline. Also last week I gave Cardano a deadline until 9th Oct for it to either break to the upside or to the downside, expecting a rather spectacular move either way (25-30%).
I still stand by this prediction and will be keeping my eyes open for a potential opportunity to add to my ADA holdings. For a good occasion to arise I will be looking for more volume with the breakout when it happens. The low volume since the start of this month has just not been enough for the decisive move to occur so far and ADA (ADA/USD) has been sort of hovering slightly over the descending upper trendline. Hopefully we do get this explosive movement in the coming days, and when we do, the price should get catapulted to its next massive area of resistance around the $2.8 mark. From $2.8 up we can expect the last serious resistance on ADA’s potential path to its new all-time high if the best-case scenario was to materialize.
In terms of the worst-case scenario (I will not even mention the S&P 500 which continues to dump again): the highly anticipated breakout doesn’t occur and the price gets rejected again and ends up testing the 2$ mark. Now, it has to be remembered that each time that a price of an asset tests support it makes it weaker and weaker. My best bet would be, if ADA falls down to this sort of area once more, there will possibly be no more time as we approach the apex of the triangle and a brutal sell-off might be on the cards for Cardano. Remember, this is only a worst case scenario and ultimately it will all depend on the King of Crypto (BTC/USD) to dictate the direction of the market in the coming weeks.
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