Key Takeaways:
- Smart contract platform Cardano could see its native token ADA gain 30% in the upcoming sessions, based on a bullish setup on the four-hour chart.
- High time frame graphs confirm the prognosys.
YEREVAN (CoinChapter.com) – Cardano was one of the most prominent ‘losers’ in Q4 2021. Its in-house token ADA complied with the sell-off pressure and declined by 46% quarter-to-date. Meanwhile, other cryptocurrencies in the top ten didn’t bleed quite as much; Bitcoin(BTC) lost 2% since Oct 1, while Ethereum (ETH) gained 27%, and Solana (SOL) was also in the green with a 13% uptrend in the same period.
However, technicals on Cardano’s (ADA) price charts suggest that the digital asset could have bottomed out.
Cardano(ADA) 4hr Price chart
Cardano formed a Double Bottom pattern on the low time frame chart. The setup occurs when a digital asset retests a support line twice consecutively, with a mild uptrend in between. The level connecting the small uptrend to the dip base is called a Neckline. The pattern predicts an uptrend equal to the distance between the dips and the Neckline.
Should the formation pan out, ADA price could reach $1.60, i.e., a 30% uptrend from the $1.22 in the New York session Tuesday. Moreover, the low trading volume on the chart above has declined in the Tuesday session, which could indicate a holding incentive. When investors are less willing to trade their ADA, the token’s value could climb up in compliance with the prediction.
Also read: Cardano’s first decentralized exchange launch boosts ADA price.
The high time frame data also indicated a possible bullish phase underway.
Cardano(ADA) Weekly Price Chart
ADA’s weekly price chart revealed that the digital asset arrived at a confluence of support that could help the token start a new leg up. One of the support trendlines has been relevant since early March 2020. ADA retested the trendline on multiple occasions, including the current week.
Moreover, resistance-turned-support at $1.19 could also facilitate the uptrend.
Also read: Cardano-hosted Nerds & Virgins project burns over 7K unsold NFTs.
Bitcoin-led uniformed declines in the crypto market influenced ADA as much as the rest of the altcoins. Nevertheless, some experts agree with the bullish outlook for digital assets.
What do the experts think?
Michael Van de Poppe, the CEO of consulting platform Eight Global, analyzed the ADA/USDT chart and pinpointed the key support levels to watch out for. The analyst also added that an over 60% loss is the “time to start looking for longs.” In detail, ‘longing’ an asset means betting on an uptrend.
Also read: Cardano crashes over 15% as brokerage firm eToro limits ADA trading.
If Mr. Michael Van de Poppe is right, now is the time to enter the market, and not only for ADA. The analyst has been bullish on an upcoming alt season for months now. However, the booming altcoin market is still to come. In the meantime, Cardano bulls hope the video below will accurately depict ADA entering 2022.
