Cardano had tremendous price increases in the past 2 years. When the crypto market crashed, its prices also sank and fell below the important psychological price of $1. Many traders rushed to stock up on ADAs, as they knew that prices were massively undervalued. Today, prices are back around $1 and are currently in consolidation mode. Can a Cardano price $2 be reached soon? Is it a good idea to buy ADA at the current price of $1? Let’s analyze 😉
What is Cardano ADA?
Cardano is a delegated Proof of Stake blockchain (dPoS), that supports smart contracts similar to Ethereum. The marketing of this project propagates a scientific approach. The development under Charles Hoskinson is rather slow, with multiple deadlines already pushed forward. On the other hand, the Basho update should be coming soon, around Q2-Q3 of 2022. This update is highly anticipated by investors, and should have a positive impact on the valuation of the Cardano project.
Why is Cardano DOWN today?
Since September 2021, Cardano has been on a downtrend. This happened as soon as ADA price reached its all-time high price of $3. The price adjustment was expected to happen. However, in November 2021, the entire crypto market crashed, bringing ADA prices further down. When Cardano price dropped lower than the psychological price of $1, traders and investors rushed to buy Cardano. This made prices jump by more than 50% within 2 weeks! Following this price surge, a correction is very normal to happen.
When to Buy Cardano?
Since we are in the midst of the crypto adjustment, and since ADA prices just soared 50%, it is a good idea to wait before buying. If we closely look at figure 2 below, the Fibonacci retracement points out to the 50% retracement level, which coincides with the psychological price of $1.
We are currently very close to the $1 zone. Traders and investors can choose to open positions around that area depending on their risk tolerance, as price might revert upwards from the current price. A sensible stop-loss would be right below the $1 price area. It is always good to have wide stop-losses to hedge heavy market fluctuations.
Cardano Price Prediction – Will Cardano price $2 be reached?
Cardano price $2 is an inevitable thing when the crypto market rallies back and goes into a renewed uptrend. On the other hand, we need to focus on the current market dynamics.
The market is adjusting lower today, especially Cardano after a 50% price increase. With the current price being right above $1, this represents the perfect opportunity to place a buy order and definitely a stop-loss. We can currently confirm that prices are back on their uptrend once the price of $1.2 breaks, as currently this is a strong resistance area. In figure 3, we can clearly see how ADA price got rejected several times. Once this level is broken higher, the next target would be the $1.5 price.
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