I traded ADA during the first week it was on Bittrex and its had my attention since. Sometimes its good to take a step back and look at the big picture. After closing a nice IH&S trade I thought Cardano deserved a review of its long term prospects. If it can clear this $. 40 hurdle, it's looking incredibly .
A potential , forming since April 2018, is nearing completion. Looking at the now, it's nearly half of what it was ranging at during 17/18. Taking a step away from the chart, since April 2018 we've seen:
- ADA staking at ~5.x%
- Mary & Goguen nearing launch, which will spawn DApps/low fee DEX.
- Bull markets for stocks & metals.
- Central banks wojacking their money printers
Regardless of what happens to ADA's price in the next week or two, it is going to start to see usage that will initially be a fraction of Ethereum's. Yet as more projects launch or port, you'll see incredible organic ADA demand for fees, token creation, DApps, etc. This is going to be a massive driver of , and you would expect price. DEX/yield farming was huge throughout 2020, and the worst part of it all has been gas fees. Gen 3 blockchains are solving this issue, and ADA is in that category. It will continue to chip away at ETH's usage as it penetrates new markets in Africa while maintaining a first world audience. There's exactly zero reason to think ADA's demand will drop over the next 18 months, and that is only compounded by the craziness of the world.
Back to the chart, once $. 40 is sustained, the coin won't see any resistance until just under $.52. Once that hurdle is cleared, it's smooth sailing until the choppy waters of $.65-$.70. The lines notated on this weekly chart were drawn from daily . The chop area is full of various wicks and closes. Unless ADA just blows right past it, it's going to cool out in that zone for a week or two...or three. Should it blow past $.70, which is entirely possible if timing coincides with the US rolling out trillion dollar projects, $.90 is the last stop before ATH . ADA launched at the right time in 2017 to catch all the bull fervor. It shot up and shot down very quick, leaving little in the way of firm supports/resistance. If you take anything from this idea, know that $.90 is the one place ADA can lose steam for a period of time.
ATH was a long, single wick. It presents little in the way of real resistance and will likely get obliterated when the time comes. 5x'ing the prior ATH would put it at $6.90. Link just 5x'd its prior ATH set in June '19.
At the time of writing ADA is at $.385.
This is not investment advice and trading cryptocurrency is high risk.
If we're at the start of the golden bull it doesn't matter much what you do. But if you see a quick run up to $.90, remember remember the rejection contender.
That big green candle happened to close in the chop zone, which was followed by another massive green candle. I'm fully expecting this week to close right around $.90. If I were a betting man, I'd wager next's weeks candle will launch off 90-95c the same way it launched off the lower bound of the chop zone. That would put the following week at ATH challenge.
If Cardano had ETH's current market cap it would be $7/coin.