- May 27, 2022
Cardano (ADA): These are the key prices to look out for today
Cardano is a proof-of-stake blockchain platform that says its goal is to enable “change agents, innovators and visionaries” to generate positive global change.
The project prides itself on ensuring that all technology developed goes through a peer-reviewed research process, which means that bold ideas can be questioned before being validated. According to the Cardano team, this academic rigor helps to make the blockchain durable and stable, which increases the possibility that potential dangers can be anticipated.
- ADA touched $3.1 at the beginning of September, but quickly fell back.
- ADA resumed the level of 0.85 after a jump above the dollar.
ADA has long been part of the TOP 10 of marketcap in the crypto world, its strong advertising has generated a wave of enthusiasts for this new technology.
Over the past 7 months, ADA lost approximately 75% of its value while watching the other global markets collapse due to the fear of aggressive policies by Jerome Powell, Fed Chairman.
After the correction, ADA ended up with the accumulation zones of the enthusiasts who entered through FOMO; getting to be in a dangerous zone, the breakeven of the Cardano LP (liquidity pool), from which, for the good of its investors, it was able to beat the bears.
It seems to be in an accumulation at the moment, the price was corrected last month back towards the Breakeven of the Cardano liquidity pool. This is a decisive point and will possibly depend on what happens this Wednesday in American monetary policy.
With the RSI it is in a bullish area of 74.95%, very unfavorable for the price, but the trend structure that it will resonate at those levels until it falls into a regression. And so then continue upward.
In the crypto market everything depends on BTC (Bitcoin), a rise in BTC would confirm our forecast on ADA for the coming weeks. BTC is located at the lower limit of the ascending channel started on January 21.
Although BTC is a risk asset, greater stability on the part of the FED, would propitiate the necessary conditions for the confirmation of this proposed scenario.
Bearish possibility on the horizon
It should not be ruled out, after all, these are projections based on the information we have so far, in the face of new information, this bullish projection could be modified. Always putting good risk management before us, the worst scenario in this market is that the opposite of what has already been said happens.
It will be then, in this first week of May, before a new meeting of the Fed, which could:
- Aggressive conditions for the markets have been established, invalidating our previous analysis.
- El Salvador’s BTC bonds could be canceled due to pressure from the IMF.
- Or the war in Ukraine could escalate.
- Russia may not end up trading its commodities in Bitcoin, thus avoiding driving unprecedented crypto adoption.
Whatever the scenario, we could be invalidated, after all, the market is always right and we just want to hit whatever you think.
Given this scenario, the estimated target for ADA would be at the level of $0.35
The market, right now, as we discussed earlier, the eye is on the FED’s interest rate decisions. Based on your decision one or another scenario will occur
At the moment, ADA, emulating the rest of the altcoin market, has fallen about 75% with respect to its historical maximum, set last September at about $3.10.
This content has been generated by Matías Colloso, Professor at the CBA Crypto Trading academy and Member of the Córdoba Bitcoin community. You can follow him on his LinkedIn.