Cardano in a consolidation phase - Where to next?
ADA lost nearly 7% of its value in the last seven days. An upside breakout was on the horizon for ADA by December if not for unforeseen events. Cardano’s [ADA] weekly price chart was painted red, mirroring...
- ADA lost nearly 7% of its value in the last seven days.
- An upside breakout was on the horizon for ADA by December if not for unforeseen events.
Cardano’s [ADA] weekly price chart was painted red, mirroring the overall market performance during the same time period. The eighth-largest crypto by market cap lost nearly 7% of its value in the last seven days, according to CoinMarketCap data.
Read ADA’s Price Prediction 2023-24
On a longer timeframe, it was evident that ADA was in a consolidation phase, with the price oscillating between $0.2 and $0.3 in the last four months.
Where does ADA go next?
Interestingly, the ongoing trajectory was similar to the one seen during 2018-20, popular on-chain analyst Ali Martinez stated on X. He outlined two probable scenarios for ADA from this point forward, one bearish and the other bullish.
Source: @ali_charts/Trading View
In the bearish scenario, a prolonged consolidation phase was predicted for ADA, with participants having to wait until 2024 for a breakout to the upside. This narrative was based on historical readings. Recall that the Covid-19 pandemic hit the market around the same time, preventing ADA from gaining bull strength.
On the other hand, the bullish idea suggested a breakout by December by ruling out the impact of unforeseen events like the Covid-19.
Technical analysis tends to be subjective and may give conflicting signals. Readers were advised to exercise caution and always DYOR.
Whales giving conflicting signals
It made sense to examine other on-chain indicators to understand if they were supportive of ADA’s rally any time soon. The whale supply was a reliable tool in this regard.
According to Santiment, mixed signals were given by whale investors. While the cohort holding between 1,000-1 million ADA coins steadily added to their stacks in the last month, substantial outflows were seen from the group storing between 1 million-10 million coins.
Therefore, it was difficult to determine with conviction the impact whale transactions had on ADA’s price movement.
Source: Santiment
How much are 1,10,100 ADAs worth today?
ADA retains positive sentiment
Despite the uncertainty and recent drops in prices, most investors seemed to have a favorable view of ADA. This was evidenced by the positive Weighted Sentiment, implying that positive commentary for ADA outweighed negative discussions around it.
At the time of writing, ADA exchanged hands at $0.2456, up marginally by 0.22% in the 24-hour period.
Source: Santiment
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