2024-11-18 11:35 |
The last few weeks have seen Cardano (ADA) on a strong run, moving to a seven-month high and turning the heads of investors further afield. That said, the altcoin could soon experience a wake-up call.
Now, as ADA is trading at $0.72, analysts are predicting that the market could actually drop to around $0.45 due to increased buying pressure.
However, this pullback can be precisely the buy signal needed. With a medium-term target of $1.20, let us dissect the factors behind the price of ADA and what lies ahead.
Rising Selling Pressure From Retail InvestorsThe excitement is palpable as ADA rallies impressively, yet a risk brewing in the background. Market activity is now driven by short-term investors, who tend to buy and sell quickly. Two weeks ago, 14% of ADA was held by short-term investors; today, that figure is around 18%.
These traders typically sell during volatile times to realize profits and could, therefore, apply selling pressure on ADA in the coming days. The increase in short-term traders indicates that ADA may struggle to sustain its gains, with a risk of a pullback to $0.45 within the coming weeks.
What’s Next for Cardano? ADA/USDT Chart|Source: TradingViewThe price of Cardano is at a key level here, with prices only hitting $0.73. If ADA is going to move higher, it needs to get above the next level of resistance at $0.8. If it pushes the price past this level towards $0.86, the bullish trend may cement further.
However, if ADA is unable to hold these levels, the price might plummet to $0.54. A break below that support could trigger more downside, sending the price towards $0.51.
This combination of mixed signals means that ADA is at least in the relative near-term market range, and its next move will undoubtedly be partially dictated by how traders react to this over the coming weeks.
While there is negativity in the short term, the long-term prospects for Cardano are looking strong. A Golden Cross saying that things are looking promising, alongside increasing developer activity and a DeFi ecosystem around ADA, holds the basis for mapping up well.
Despite temporary price drops (such as the one yesterday), Cardano Fundamentals remains strong, and if able to overcome short-term volatility, Prices could be skyrocketing in a couple of months.
Is Now the Time to Buy?So, should you buy the dip? Many analysts think that if ADA drops to $0.45- $0.50, one entry point for long-term investors is that level.
Given that this cryptocurrency could have massive upside in the future—especially with Cardano likely to cement itself as a serious player in the whole DeFi landscape—$1.20 is very much on the table. Some major upside might be in store for anyone with enough patience to weather the volatility.
No recommendations or advice regarding investments are made in this article. Readers should perform their own due diligence before making any investment or trading decisions because of the inherent risk in these activities.
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