Cardano (ADA) is currently at a critical support level, indicating that a massive move is expected in the near future. The price of ADA has been compressing above the key support at $0.30, which has been tested three times since mid-July. Here are three things to watch for in the Cardano price analysis:
1. Key Support Under Pressure: On Monday, ADA briefly dipped below the key support level of 30 cents, but was quickly saved by bullish buying pressure. The repeated testing of this support level indicates that the pressure is building up, and a significant move is imminent.
2. Price Compressing in the Apex: The current price formation of ADA shows a descending triangle, formed by the intersection of its current support level and the correction from the pump in early July. This formation is approaching its apex, suggesting that the price is likely to break out soon, bringing back volatility to ADA.
3. The Quiet Before the Storm: As market participants remain undecided about the direction of Cardano’s price, volatility is expected to decrease until the end of the formation. The daily MACD indicator also reflects this indecision, as it has turned flat on the histogram. However, this calm period is unlikely to last, and the price will soon make a significant move.
Short-Term Prediction for ADA Price: With the key support at 30 cents holding, ADA could potentially reach the key resistance level at 35 cents. However, if buyers fail to rush in and support the price, the support level may fold, and buyers should show interest at 28 cents. The bias for ADA is currently neutral, indicating a wait-and-see approach.
In conclusion, Cardano is at a critical support level, and a massive move is expected in the near future. Traders and investors should closely monitor the price action and key support and resistance levels to make informed decisions. As always, it is important to conduct thorough research and analysis before making any investment decisions in the cryptocurrency market.
