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The Cardano price dropped more than 1% over the past 24 hours to trade at $0.520036 at press time as traders readjust their portfolios heading into the new week.
Analyst Maintains Bullish Outlook Towards Cardano Price
I really like seeing the Grayscale smart contract fund in Solana, Cardano, AVAX, & others It’s an early reminder that institutional inflows will pour into altcoins after Bitcoin We are just getting started pic.twitter.com/dVLHKniWO5 — Dan Gambardello (@cryptorecruitr) January 6, 2024
Renowned analyst and trader Dan Gambardello is bullish towards ADA, Solana (SOL), Avalanche (AVAX) and a handful of other altcoins. The positive attitude towards these altcoins is due to the Grayscale smart contract fund, which is linked to the performance of these altcoins. According to Gambardello, this is an early indication that institutional funds will likely flow into the altcoin market after Bitcoin (BTC). Several X users seem to agree that the Cardano price is a bullish explosion waiting to happen.
Sellers May Pull The Cardano Price Lower
Daily chart for ADA/USDT (Source: TradingView)
A falling wedge has formed on ADA’s daily chart, which suggests that the Cardano price may continue to drop in the next 48 hours. Should this bearish thesis play out, the altcoin may retest the immediate support level at $0.4915 soon. Thereafter, continued sell pressure may force the Cardano price below this significant mark. This could then expose it to the risk of falling to as low as $0.41 in the short term.
This bearish thesis may be invalidated if the Cardano price is able to close a daily candle above $0.5380 within the next 72 hours. In this more bullish scenario, the cryptocurrency could ascend to the subsequent threshold at $0.5830 through the course of the following few days.
ADA Deeply Entrenched in Bearish Cycle
Technical indicators on ADA’s daily chart showed that the altcoin was deep in a negative trend. Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) were flagging bearish.
The MACD line was breaking away below the MACD Signal line, which suggests a continuation of ADA’s current bearish trend. Meanwhile, the RSI was breaking away below its Simple Moving Average (SMA) line. This is generally seen as a sign that sellers are growing stronger against buyers. As a result, it will be easier for bears to drag the Cardano price down in the next few days than it will be for buyers to boost it.
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