Cardano Hits Bottom? What You Should Consider Before Rushing In

Cardano was able to climb the list of top 5 cryptocurrency by market capital and claim the fourth position without USDT. After an explosion of its ecosystem, the cryptocurrency saw significant appreciation over 24 hours (5%) and for one week (25%).

| Cardano’s Ecosystem Explodes, Why ADA Could Be Quick To Resume Bullish Trend

As press time approaches, ADA is trading at $1.47. It bounces back up from its 4-hour lows to trade at $1.47.

ADA Trends to the Upside in the 4-hour Chart Source: ADAUSDT Tradeview

Cardano suffered heavily from recent crypto market price fluctuations. The cryptocurrency fell after reaching a record high of $2,20. It then slipped back to its crucial support zone, just below $1.

Economist Michaël van de Poppe believes ADA has begun an upward trend after bouncing back from the lows with continuation but could yet present a buying opportunity. Since ADA’s inception, the analyst believes that $1 will be a crucial support.

Cardano (ADA), as seen below, has always bounced back from these levels after every major drop including the March 2021 and July 2021 crashes that saw over half of crypto markets crash.

ADA’s critical levels in the daily chart. Source: Michaël van de Poppe via YouTube

At the moment, ADA’s price approaches resistance near $1.53 and could yet give traders an opportunity to take a long position. Van de Poppe claimed the following on Cardano’s potential future price action:

If you want to get into Cardano and you didn’t really get the chance you were looking for (…). We are considering long entry at lower limits, so $1.3. Support is considered here in a daily context.

On lower timeframes, van de Poppe believes traders shouldn’t be chasing positions, but $1.41 could provide an “aggressive” opportunity to take a long. Cardano should break above $1.55 to maintain its bullish momentum.

Cardano Experiences Ecosystem Explosion

If ADA fails to overcome the resistance above, it may form a consolidation zone that could offer a better opportunity for a longer position. Cardano could reach former highs of $2.33 to $2.33 if it can maintain those levels.

Cardano is trading stronger than most cryptocurrencies, but Bitcoin should maintain its current level or trend upside to stop ADA from retesting its support levels. Bitcoin is currently leaning towards the short-term downside.

ADA’s recent bullish price action seems to have been driven due to a growth in the number of projects building on the network. NewsBTC reports that there are over 200 projects currently leveraging smart contracts capabilities of the network.

Cardano Set To Enter The Babbage Era After Alonzo HFC Milestone| Cardano Set To Enter The Babbage Era After Alonzo HFC Milestone

Source: Twitter – Input Output Media

Get more Crypto News at CFX Magazine