The cryptocurrency market finally managed to get out of its consolidation. After an extended bearish sentiment, the past week made way for crypto buyers to push prices upwards. Despite the average +20% performances of most cryptos, Cardano made lower than average returns and averaged a 10% increase in prices. The Alonzo improvement is soon to happen, but will it roll out successfully? How will Cardano prices get affected? Can Cardano reach USD 3?
Cardano (ADA) is lagging compared to other Altcoins
Although prices of ADA did increase in the past week, prices did not boom as much as other cryptocurrencies. Instead of having strong spikes in prices, ADA’s price action was mature and showed a steady uptrend. On the other hand, this behavior saved ADA, as other cryptocurrencies that spiked like Bitcoin witnessed a price correction. Despite the adjusting crypto market, Cardano prices remained high. Currently, ADA prices are around USD 1.3 and on an uptrend.
If we look closely at figure 1, we can clearly see the strong psychological support level of 1$. Prices rebounded every time they approached this area. The last time prices hovered on that price was towards the end of July 2021. It was a clear trade setup for most crypto traders, and this is exactly how trades should be set up.
Cardano Price Prediction – Can Cardano reach USD 3?
It is hard to predict whether can Cardano reach USD 3, especially with the latest development in its infrastructure and blockchain. But looking at ADA’s previous price-action, we can definitely make an educated guess. From a technical perspective, and based on what happened before, prices need to breach the strong resistance area of USD 1.46 and stay well above that area.
On the other hand, it is vital for the entire cryptocurrency market to be in good shape. This would give a healthy entry for buyers, especially for traders who are sitting on the sidelines, waiting for good fundamentals to swap from their altcoins.
Cardano Trade Setup
If you want to place a trade on Cardano (ADA), you can do the below trade setup:
- Entry: USD 1.33
- Take-profit: USD 1.46
- Stop-loss: USD 1.25
- Risk/Reward ratio: 2.5
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