Cardano Value Prediction: ADA Sees 25 P.c Positive factors Regardless of Current Slowdown – Twittersmash

0
  • Cardano price rebounded 16% from a swing low on June 8, hitting a local high.
  • This rally shows diminishing bullish momentum and suggests a minor retracement to $ 1.50.
  • A bull resurgence at this level could push ADA 25% to $ 1.95.

Cardano price shows a bullish structure despite the chaos caused in late May. ADA hit a higher low on June 8, followed by a rapid rebound, a common theme in the crypto market.

Lately this rally has slowed, indicating the depletion of bullish momentum. ADA could be due for a small retracement before the uptrend resumes.

Cardano price makes a detour

Cardano price rode the bull wave, rising 16% to $ 1.638 from a swing low on June 8th. As investors begin to post profits, the rally appears to be coming to an end. So far, ADA price has fallen about 3% from the previous swing high and could continue until it hits the 50% Fibonacci retracement level at $ 1.50.

A quick return of the bulls seems likely at this point. However, the outlook for Cardano price will remain bullish until the 70.5% Fibonacci retracement level of $ 1.316. Therefore, a break in support levels of $ 1.50 to $ 1.316 is likely to create massive buying pressure and push ADA to critical levels at $ 1.638, $ 1.741 and $ 1.848.

In a strongly bullish case, Cardano price could mark the high at $ 1.949 or the lower bound of the supply zone of $ 1.977 to $ 2.084.

ADA / USDT 4 hour chart

While the technicals are pointing to a decline, the metrics are solidifying in the chain. IntoTheBlock’s Global In / Out of the Money (GIOM) model shows a huge group of underwater investors present before us.

Approximately 162,000 addresses bought nearly 2.23 billion ADA at an average price of $ 2.01. These “out of the money” investors could slow or stop the recovery if they decide to break even and sell their holdings.

ADA GIOM diagram

ADA GIOM diagram

Another support of the retracement is the lack of users who interact with the Cardano blockchain. The number of new addresses that have joined the network has decreased from 63,660 to 38,070 in the last month.

This 40% decline suggests that market participants are reallocating funds or posting profits. Both paint a short-term bearish picture, which gives the pullback thesis more credibility.

ADA new address table

ADA new address table

If the Cardano price falls below the 79% Fibonacci retracement level at $ 1.24, it would invalidate the bullish thesis and open up the possibility of another downturn. A potential spike in selling pressure could push ADA 15% to the $ 1.051 low.

Leave A Reply

Your email address will not be published.