Cardano (ADA) finds itself again at a critical juncture, poised for a significant price move soon, according to crypto analyst LuckSide.
In his recent YouTube video, he presented a technical analysis suggesting ADA could either climb towards bullish territory or dive into bearish waters.
The key indicator pointing towards this imminent price shift is a substantial gap in ADA’s price chart. This “liquidity vacuum” sits between $0.60 and $0.67, marked by consistent selling pressure, very different from the strong support level at $0.40. Historically, such unexplored gaps have often preceded significant price movements for ADA.
LuckSide predicts two potential scenarios based on this gap. The first is a bullish surge to test the $0.70 resistance level. Another prominent analyst recently predicted a surge to $0.7 for ADA, adding credence to LuckSide’s prediction.
However, the second scenario could see ADA go on a bearish correction down to the $0.40 support. While acknowledging the market’s unpredictability, he also highlights factors suggesting ADA’s resilience.
Among these are stable support levels and moving averages. These technical indicators point towards the underlying strength of the crypto asset. He also highlighted the positive influence of Bitcoin (BTC). The flagship crypto’s recent stability and low volatility contribute to a favorable market environment for ADA.
Another important factor is the upcoming Bitcoin Halving event estimated to happen in April 2024. This anticipated event historically triggers bullish trends across the crypto market, potentially favoring Cardano (ADA) as well.
However, LuckSide cautions against overconfidence, reminding viewers that unforeseen events can always alter the market’s direction. He even sees a potential drop to $0.40 as a buying opportunity for long-term investors.
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ADA’s Growth Trajectory
Meanwhile, Cardano’s network growth continues to mirror Bitcoin’s early trajectory, as celebrated by its founder Charles Hoskinson on X.
Hoskinson noted that criticisms of Cardano being a ghost chain with no liquidity have now morphed into concerns about the network reaching its block capacity.
Hoskinson assured the community that Cardano is designed to handle such growth while allowing for future scaling of the network and its decentralized applications (DApps).
Hoskinson also pointed out that Cardano grew without the involvement of Venture Capital, media hype, or influencers. This is a source of pride for Hoskinson, highlighting the network’s strong fundamentals and promising future.
ADA is also one of the tokens that was recently listed in new trading pairs on Binance, and the exposure to more users for the Cardano ecosystem could give it a boost.
Tobi Loba is a passionate writer with a vast interest in the stock market. She joined the crypto ecosystem about three years ago and has written lots of ebooks and articles in relation to cryptocurrency and blockchain projects. Tobi Loba earned her degree at the University of Ibadan.
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