Cardano ADA is a top contender when it comes to use-cases in the future. After the recent crash, Cardano prices adjusted heavily and fell around 60%. But when looking at prices from a macro perspective, we notice that ADA prices merely adjusted back to their average uptrend. In this article, we’re going to give a Cardano Price Prediction and see why ADA is still a good buy. Many investors are already expecting ADA to reach its previous price of 2$, which means a 30% increase from current prices!
ADA Price Analysis – What Happened during the Crash?
Before the crypto crash happened, ADA was going on a very strong uptrend and was extremely overbought. In fact, people started to hype this token on online forums and communities. Just like newbies knew about Bitcoin, Cardano became yet another project highly spoken about between the “masses”. This extreme hype brings often outsiders and newbie investors, who throw themselves into buying coins and get out of the market as soon as prices tumble.
This is exactly the case for ADA. In figure 1, we can clearly see how prices became overbought, which often signals a heavy drop in prices. Consequently, this drop came just in time with the entire crypto market, and ADA lost around 60% of its prices, going from a high price of USD 2.4 all the way to reach a low of USD 0.95!
Should you Buy Cardano ADA?
If we zoom out to the daily chart for ADA, we notice a clear similarity in price-action behavior with Ether. Prices are still going in an uptrend channel. They were both overbought as well, and both crashed similarly. What’s also interesting is that ADA is still well up YTD, with a whooping performance of +800%! How can people still call cryptocurrencies “bad investments”?
In figure 2, we can clearly see this zooming out, and notice how prices are still on an uptrend. Currently, prices might still adjust lower and reach a price of USD 1.4, so it is advisable to have the below setup:
- Entry price: USD 1.4
- Take profit: USD 2
- Stop Loss: USD 1.25
On the other hand, if you are in it for the long term and hate following up with prices daily, you can simply buy at today’s prices, while putting a wider stop-loss of around USD 1.1. This way, you don’t stress about the daily crypto market fluctuations, and know already your drawback.
The Crypto Market as a Whole
In the past 24 hours, most cryptocurrencies seem to consolidate in prices or even adjust lower. Bitcoin rose as little as 2%, while other Altcoins like Bitcoin Gold and Terra rose 11% and 8.5% respectively:
1- Bitcoin (BTC) : + 2.1 %
2- Ether (ETH) : – 2.56 %
3- Tether (USDT) : 0 %
4- Binance Coin (BNB): – 3.58 %
5- Cardano (ADA) : – 5.08 %
6- Dogecoin (DOGE) : – 1.73 %
7- Ripple (XRP) : – 3.35 %
8- USD Coin (USDC) : + 0 %
9- Polkadot (DOT): + 3.24 %
10- Uniswap (UNI) : – 2.18 %
Stay Ahead, Stay Updated
Rudy Fares
