Cardano Price Prediction: ADA Primed For Upturn
Summary:ADA price lost more than 14 percent in the last week, but a return above $1 with 27 percent of investors out of the money signals recovery. Cardano price returned to the upside on Tuesday, gaining...
- Summary:
- ADA price lost more than 14 percent in the last week, but a return above $1 with 27 percent of investors out of the money signals recovery.
Cardano price returned to the upside on Tuesday, gaining 2.1% at the time of writing to trade at $1.027. The coin is attempting to recover after losing more than 14% of its value in the last week. Its downside has been exacerbated by a blend of profit-taking and Bitcoin’s consolidation in the last four days.
ADA Price Analysis and Pathway to the Upside
ADA price traded below the $1 mark for more than two and a half years before breaking above that barrier on November 22. That meant that a significant portion of the coin’s holders couldn’t wait to sell their assets for profit, in view of ADA’s 130% rally in the last month.
Therefore, a return above the psychological $1 mark signifies investors’ willingness to buy the coin at a higher price than it has traded for the better part of the period since April 2022. This signals growing investor confidence in ADA price upside, which will add propulsion.
Despite its streak in the last month, about 27% of ADA holders are “Out of the money”. That is explained by the fact that 71% of investors have held the coin for more than a year, with only 8% having held it for under a month. Therefore, with more than a quarter of investors still waiting to realize profits, that could diffuse the downward pressure caused by recent profit-taking.
On the technical front, ADA price currently trades marginally below the Volume Weighted Moving Average (VWMA) of $1.077 on the daily chart. Therefore, returning to that level would result in a more reliable upside momentum.
ADA Price Forecast
Pivot: ADA price pivots at $1.015, and action above that level will favour the buyers.
Resistance: With the buyers in control, Cardano price will move higher but will likely encounter the first resistance at $1.040. However, a stronger upward momentum will break above that level and potentially test $1.050.
Support: The first support will likely be at $1.000. However, extended bearishness could break below that level and invalidate the upside narrative. Also, the resulting momentum could extend the decline and test the second support at $0.980.
Cardano Catalyst Project - Discover and Vote for our proposals in Fund 13 by December 12, 2024 11:00 UTC
If you are you using your ADA to vote in Cardano’s Project Catalyst don’t forget to voice your vote. We would be excited if you can see, comment, share and vote for us. Cast your vote today, find our proposals by searching "CardanoFeed" in the Voting App.Vote for Us
