I built this chart a few weeks back when Cardano was in the process of completing a long term . With ADA price shooting up, I've seen alot of people on social media just pulling resistance/price levels out of their butt so I wanted to re-publish this with some hopes that people will have a better idea of where roadblocks lie ahead.
As noted in the previous post, Cardano launched at the perfect time to catch the bull fervor of 2017. It was nowhere near ready to hit those price levels and the coin shot up dramatically in a short period of time. As such, we don't have a ton of levels to work off of - given that the coin was rising 10-25c/day. But we do have some to work with. The chop zone we're heading to was formed during the crash of 2018 and represents a lot of ping pong action on the way down. I see two ways this will play out:
1. Price blows right past
2. Price chops around in that zone and gathers steam for a quick move to 90c once it breaks 70c.
If #1 plays out - I'd expect a swift rejection on the first attempt at 90c. If #2 plays out - 90c could get obliterated on first attempt. If 90c is quickly overcome and we get some hourly candle closes above $1 - then we're going to challenge ATH relatively quickly thereafter. Keep in mind all of this could happen in a short time period with Greyscale opening an ADA trust and a potential CB listing (Hoskinson eluded to a big liquidity announcement soon). The rise from a dime to a dollar happened in a blink of an eye before so that *is* the precedent.
Inevitably Cardano will break its prior ATH , and its also inevitable that it will chip away at ETH Dapp/DEX market share with $LQ launching in <3 months. How long you want to stay on the ride is entirely up to you. Now, between 65-70c, and from 95c-$1 all represent good potential entry points when the price is right.
This is not investment advice and trading cryptocurrency is high risk
I definitely expect to see upward price action temper a bit now. It's running parabolic and we might see a wick or two breach $.70 but the chop zone is looking like a good place for the parabola to break down and consolidate within.