Grayscale Outlines Cardano’s Key Pros and Cons in New Report
Leading cryptocurrency asset manager Grayscale released a new report about Cardano as part of its series of educational cryptocurrency overviews called “Building Blocks.” In the report, the investment firm has outlined the main advantages of the third-largest cryptocurrency as well as some of...
Cardano
Published
2 hours ago
on
03/10/2021
- Cardano price rallied twice after a breakout from the descending parallel channel.
- The bulls are in a tricky position as failing to slice through the $2.39 barrier could result in a downtrend,
- Depending on the relative close, ADA could experience a 15% breakout in either direction.
Cardano price was on a steep downtrend after the September 2 swing high. However, this correction resulted in a bullish technical formation. ADA broke out of this pattern on September 23 but has failed to restart a bull rally so far.
Cardano price at make or break point
Cardano price rose 11% after it sliced through the ascending parallel channel’s upper trend line. While this rally pierced the $2.39 resistance level, the bulls failed to sustain the flight, leading to a 17% downswing.
Here, ADA consolidated for a while and popped off as it rose 15%. However, the buyers seem exhausted as the so-called “Ethereum killer” is coiling up even before it retests the $2.39 supply barrier.
Assuming ADA price gets the boost to shatter $2.39, it will have to face the 50% Fibonacci retracement level at $2.51. Beyond this barrier, Cardano price will encounter the high probability reversal zone, ranging from $2.65 to $2.86.
If ADA continues to shatter these barriers, the market makers will likely target the buy stop liquidity resting above September 11 swing high at $2.75.
Therefore, the bulls are in for a 15% climb infested with hurdles, making this uptrend a high resistance liquidity run.
ADA/USDT 12-hour chart
On the other hand, if Cardano price fails to shatter the $2.39 resistance level, it will indicate a weakness among buyers and could likely result in a 15% downswing to the $1.98 support floor.
However, a breakdown of the $1.91 demand level will invalidate the bullish thesis and trigger a downswing to $1.81 or $1.76.
Delegate Your Voting Power to FEED DRep in Cardano Governance.
DRep ID: drep12ukt4ctzmtf6l5rj76cddgf3dvuy0lfz7uky08jfvgr9ugaapz4 | We are driven to register as a DRep by our deep dedication to the Cardano ecosystem and our aspiration to take an active role in its development, ensuring that its progress stays true to the principles of decentralization, security, and community empowerment.DELEGATE VOTING POWER!
