Home Coins Cardano (ADA) Cardano short-term Price Analysis: 02 December

Cardano short-term Price Analysis: 02 December

- Advertisement -


Cardano’s rise during the bitcoin rally was parabolic but unlike the king coin, it wasn’t sustainable. The retracement pushed ADA down by a whopping 35% and since then, the coin has been consolidating.

For now, we can expect ADA to keep continuing its consolidation until it reaches a boiling point. Post which, we can see a breakout that will make or break ADA. Judging by bitcoin’s short term bias, which is bearish, it will be the former, unless we see a drastic drop in bitcoin’s price.

Cardano 4-hour chart

Source: ADAUSD TradingView

The 4-hour chart shows consolidation on ADA’s part, which is forming a symmetrical triangle pattern.

Rationale

The pattern has no definitive bias, however, considering the previous trend, which was a parabolic bullish move, this becomes a bullish continuation pattern. Hence, we can expect ADA to surge after hitting a breakout point. This is the first reason for being bullish on ADA; other reasons include the level at $0.147 is strong support, which has held up so far.

A bounce from this level seems likely and might what ADA needs to break out of the consolidation pattern.

While it is promising to go long on ADA, there are few things to consider, which if it does play out might deter this bullish bias for ADA. The first is the overall ecosystem’s health, and if it is overleveraged, an unwinding might push the price down for all coins.

Bitcoin at press time has blown off some steam considering yesterday’s drop, which caused a 10% drop and millions in liquidation. So, for the extremely short-term, a drop might be not on the menu, however, it can be expected.

Conclusion

Considering Cardano’s growing correlation with bitcoin, it calls to rethink the long position on ADA. This is because the risks of a drop are high especially when bitcoin is trying to surpass its all-time highs.



Source link

- Advertisement -
Mr Bitcointe
Mr Bitcointehttps://www.bitcointe.com/
“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel
468FansLike
76FollowersFollow
4,567FollowersFollow
5,261FollowersFollow
1,558FollowersFollow
2,230SubscribersSubscribe
USD - United States Dollar
EUR
1.21
GBP
1.36
CHF
1.13
NOK
0.12
JPY
0.01
CAD
0.78
AUD
0.77

Most Popular

bitcoin
Bitcoin (BTC) $ 32,339.00
ethereum
Ethereum (ETH) $ 1,337.37
ripple
XRP (XRP) $ 0.267840
tether
Tether (USDT) $ 1.00
bitcoin-cash
Bitcoin Cash (BCH) $ 434.05
bitcoin-cash-sv
Bitcoin SV (BSV) $ 175.22
litecoin
Litecoin (LTC) $ 136.90
eos
EOS (EOS) $ 2.64
binancecoin
Binance Coin (BNB) $ 41.34
okb
OKB (OKB) $ 5.65
tezos
Tezos (XTZ) $ 2.89
leo-token
LEO Token (LEO) $ 1.32
cardano
Cardano (ADA) $ 0.343853
monero
Monero (XMR) $ 138.12
stellar
Stellar (XLM) $ 0.260488
chainlink
Chainlink (LINK) $ 23.19
huobi-token
Huobi Token (HT) $ 5.63
tron
TRON (TRX) $ 0.029595
usd-coin
USD Coin (USDC) $ 0.999981
dash
Dash (DASH) $ 104.67
neo
NEO (NEO) $ 23.46
iota
IOTA (MIOTA) $ 0.430920
nem
NEM (XEM) $ 0.233654
zcash
Zcash (ZEC) $ 86.97
maker
Maker (MKR) $ 1,391.39
paxos-standard
Paxos Standard (PAX) $ 1.00
ethereum-classic
Ethereum Classic (ETC) $ 7.44
vechain
VeChain (VET) $ 0.029643
true-usd
TrueUSD (TUSD) $ 1.00
ftx-token
FTX Token (FTT) $ 9.97
kucoin-shares
KuCoin Token (KCS) $ 1.14
waves
Waves (WAVES) $ 6.84