Which analysis do you want to see? Every week we will be holding a poll on our socials. Here you can vote on the next altcoin analysis. This week Cardano (ADA) emerged as the winner. Let’s look at the course.
Main Supports
Since this is Cardano’s first analysis, we are going to look at the price on large timeframes. The chart below shows Cardano’s weekly chart. Where you can see the most important levels at a glance.
The top yellow zone is the current support. This is between a price of 0.92 and 1.01 dollars (0.81 and 0.89 euros). The price was able to find support here after an all time high in August. The price is in a crucial spot, because if ADA holds the price here, it could rise further to a new all-time high, albeit very prematurely.
Bear scenario
Don’t be alarmed, but if Cardano falls through this support, things will not look good. ADA has of course had a super good bull run in 2021, and it is not surprising if there is a big correction after that (worse than there has already been). As you can see there is no support of any kind between the two yellow zones and this carries a risk.
When the price drops through the upper support, it will quickly fall as there is no support to stop the price. The end station in this case will be the lower yellow zone, with a rate between 0.36 and 0.40 dollars (0.32 and 0.35 euros).
Comparison with bitcoin
Looking at the ADA/BTC chart, the latter scenario is not unthinkable.
This chart shows the most important zone for cardano so far. The price has clearly started a downward trend since the all time high (with lower lows and lower highs). The yellow zone is the first place where Cardano can find support. When this is achieved, the token will have a better entry position, but for now things are not looking good.
This chart has been compared to bitcoin, so it doesn’t necessarily say anything about the dollar or euro price, but it does give an important indication; ADA will be a worse investment than bitcoin for the foreseeable future. In addition, the dollar chart will only look good if the upper support does its job.
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