Cardano (ADA), a competitive smart contracts token, is currently stuck in a price range of $0.25 to $0.45, unable to move as quickly as investors had planned. However, this could be a watershed moment for both individual and institutional investors. This is because they are accumulating ADA while waiting for a price breakout.
ADA, along with other cryptocurrencies such as Polygon (MATIC) and Solana (SOL), was accused of being securities by the Securities and Exchange Commission (SEC) earlier this month. However, when the court found in favor of XRP, the price of ADA skyrocketed. This has raised investor interest in alternatives to the SEC-labeled unlawful securities.
ADA’s price movement has been difficult, remaining below major moving averages. This means that additional decreases are possible. A sell signal from the Moving Average Convergence Divergence (MACD) indicator adds to the pessimistic sentiment, exposing ADA to losses as low as $0.25.
Technically, the price of ADA has just reached its bottom trendline. Maintaining above this line is critical for a possible trend reversal. Breaking below it, on the other hand, might lead to more falls.
JUST IN: 💶🤔#Cardano (ADA) is currently stuck in a price range of $0.25 to $0.45, unable to move as quickly as investors had planned.
— Walletor (@walletorapp) August 15, 2023
Despite the difficulties, there is still reason to be optimistic. If ADA can break and hold above the 50-day moving average. It may imply easing selling pressure and the possibility of a bullish reversal. This could result in a surge above the $0.45 barrier set in July.
Cardano’s current scenario, according to crypto analyst Ali, mimics previous oscillations that resulted in a major bull run. Patience appears to be the key, and for those prepared to wait, a significant breakout might emerge in early 2024.
Conclusion
To summarize, Cardano’s present consolidation period may hold the key to future gains. As investors accumulate ADA during this period, all eyes are on the potential breakout that might catapult the price of ADA to new highs in the coming years.
