Cardano (ADA): Gold in disguise?

Cardano has defied all others and made a new high, reducing the April 2021 price action against the August 2021 rally. Defying expectations of a halt around $2.5, ADA hit a home run with a simple thought and a breakout pattern, which has been repeated more than three times since trending in July 2021.

Leaving the fundamental terminology aside, let’s go straight to price analysis and estimate the potential for further growth of ADA. When one asks about the major cryptocurrencies, ADA has secured its spot among all three groups with a market capitalization of around $90 billion.

On the lower time frame, Ethereum seems to be in trouble with a rally near $1.05 to $3. cardano To go side by side with Ethereum just needs to rise 4.3x to $12.34. From a technical and emotional point of view, Cardano could pull out ETH, but it won’t be done in a day or a week. But instead, it will take a few years to become the No. 2 cryptocurrency.

Cardano Price Analysis

Cardano is unique because of its use case that goes beyond what is understood by the dominant proof of stake-based cryptocurrency. It combines security, scalability within a sustainable environment that consumes very little energy to validate a transaction. Furthermore, the much-anticipated Alonzo fork in ADA could work wonders for its evaluation as it would enable ADA to execute smart contracts without changing its algorithms.

cardano price analysisFollowing its breakout on August 19, 2021, Cardano price has reached a level beyond our perception. ADA expected to receive about $2.50. Still, the tables were turned under expectations of the upcoming Alonzo fork, which would enable it to contribute to smart contract development. There is a lot of doubt, fear and uncertainty as it consolidates at the higher peak of $3. Some expect ADA to bounce back, while others see it as an opportunity to buy more before it becomes a double-digit cryptocurrency.

Technical indicators are indicating an upcoming profit booking as MACD forms a bearish crossover on the daily chart followed by lower volume on the charts last week. There is some strength in the RSI as it shows the 67 level on the chart. However, according to us there is a strong emerging potential for retracement cardano price prediction. Taking entry at such levels should be done with caution and with a backup to average out in case of a downtrend.

cardano price analysis chartThe hourly chart on ADA highlights the similar concern of booking a fixed profit. Here we are seeing the formation of a flag and pole pattern, and ADA is finding it difficult to make higher highs taking support from the same level. A break above the $2.70 level on the hourly chart could prompt a panic profit booking push towards the $2.50 level. For widespread success, ADA must consolidate over a longer period of time to eliminate any room for weakness in the area.

The volume on the hourly chart has remained the same over the past five days, which is the exact opposite of the volume on the daily chart. Here the RSI is trading slightly above the neutral zone. There has been no overbought level or strong buying sentiment in the last four days. Such price movement demands calculated moves.

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