Cardano Can Take on Bitcoin, Ethereum in the Long-term
The brainchild of Charles Hoskinson, who has earlier been credited with co-founding Ethereum, has some promising potential in contrast with the latest happenings in the crypto world. Cardano was officially launched in September 2017, and in merely three years, ADA has reached fifth position trailing only the Bitcoin, Ethereum, Tether, and Binance Coins. It is currently leading XRP by a market cap of over 35%. All these factors point out the possibility of Cardano actually becoming the largest cryptocurrency in the market in terms of market capitalization.
The highest market cap of ADA was close to $78 billion on May 16, when it came closer to $2.5 value. While the bull run is over when compared to the highs of May, the majority of the crypto is still trading in a bullish range when compared to their valuation growth over the last three years. ADA has come up from the lows of $0.00351 to over $1.38 as of August 06, 2021. This is a substantial rise of more than 3831% in a matter of three years, increasing the initial investor’s money by more than 35 times.
Cardano Price Analysis
When seen from a long-term perspective since its trading became online on the Binance network, we can see a substantial rise with strength in its price action. There is no sign of weakness. In fact, ADA can be seen consolidating between the levels of $1.20 and $1.40. From a price action perspective, we can witness several wicks being formed every month from the bottom end; these indicate negativity being taken as an opportunity to buy more by traders. Neglecting the wicks, we can expect a rally.
The critical aspect of ADA to be considered is its returns when compared to ETH and BTC. The returns of 40x can and should turn to more than 200x in a matter of years. Thus, there is no weakness from a fundamental perspective, and we can expect ADA to cross $10 in the next three to five years. With more and more inclination towards crypto and blockchain technology, being able to resolve stealthy problems, it is the right time to acquire more without disturbing other sources of savings.
ADA can be seen moving upwards steadily with a mixed bag of red and green candles on a one-day time frame, indicating consistent trading. It is essential for reducing the risk of a significant sell-off, as seen in May 2021. For now, the lower wicks are a sign of bottom buying, but for a full-on bull run, we need ADA to cross the immediate resistance and 100 DMA that coincides around $1.45.
Since ADA found support close to the 200 DMA, we can take that line as a support zone to add more in case of a fallback. The road to double-digit will not be in a straight line, but out of all the other cryptocurrencies, ADA has the highest probability of coming out as a leader.
RSI on daily charts is exceptionally bullish, although the same can’t be iterated from its price action and MACD indicator, as both of them are quite sluggish. The primary thing in it is price action and buying volumes, which can instigate a significant buying in ADA.
One-hour charts indicate immensely positivity with ADA respecting its positive trend line. On support levels, ADA is getting swing support from the last low levels, which means a considerable strength in its price action. At the same time, we are witnessing some resistance at $1.39 levels. All these point out towards an upcoming breakout or consolidation.
Based on our ADA price prediction, a breakdown after such a positive momentum is highly unlikely but cannot be ruled out. Therefore, traders should take a stop loss of around $1.25 and wait for lower levels to average out.