Cardano (ADA) Worth Prediction: A Multi-Timeframe Evaluation – InvestingCube
Cardano price remains in the range as investors wait for a catalyst. ADA is trading at $ 1.5717 where it was for the past few days. It has a market value of more than $ 50 billion and is the sixth largest cryptocurrency in the world. It sits between Binance Coin and Dogecoin, which are valued at $ 56 billion and $ 43 billion, respectively.
What happened: Cardano’s price is largely determined by the overall performance of Bitcoin and sometimes Ethereum. As such, the coin is rising, in part because BTC saw a rebound after the El Salvador government made BTC legal tender.
Looking ahead, US inflation data, which will be released later today, could be the next major catalyst for Cardano. The numbers are expected to show consumer prices rose more than 4.5% in May, in part because of the Colonial Pipeline hack.
If the numbers disappoint, we could see higher cryptocurrency prices as it means the Fed will hold low rates and QE for longer. This will have a positive effect on Cardano prices. On the other hand, if the CPI is better than the forecasts, it means the Fed could act faster. So what’s next for the ADA price?
Weekly analysis of the Cardano price
On the weekly chart, we can see that ADA price has been consolidating lately. However, a closer look explains why this consolidation occurred. The coin formed a cup and handle pattern, which is usually a sign of bullish continuation.
Therefore, this consolidation can be the formation of the grip portion of this pattern. Hence, the coin is likely to break out higher in the longer term. This will be void if the price drops below the $ 0.50 psychological level.
Daily analysis of the ADA price
Turning now to the daily chart, we can see that ADA price has formed a widening wedge pattern. In technical analysis, this pattern is usually a bullish sign as well. In most cases, the price tends to break out higher above the top of the wedge. Therefore, we cannot rule out a situation in which the price breaks out bullish in the short term. This prediction will be void if the price moves below the bottom line of the chart.
Please note that the daily and weekly charts are used for traders with a longer horizon. We could therefore see increased volatility in the short term.
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ADA daily chart
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