© Reuters Three Reasons Why Ethereum-killer Cardano Will See 40% Upswing
- is at a make-or-break point where a 40% price rally is likely in the altcoin.
- ADA could plummet lower before starting a massive uptrend in the bearish crypto market scenario.
- Cardano ecosystem has witnessed tremendous growth, with 100 new projects launched in the past week.
Cardano has witnessed a slew of development since May 2022. The Ethereum-killer network recently hit a new milestone, functioning for 1,760 days without suffering an outage. Cardano has proven its reputation as one of the most stable networks in the crypto ecosystem.
For the past five years, Cardano tackled extremely high loads without an outage. The network has functioned smoothly despite a rise in the number of decentralized applications on its blockchain. Notably, over 100 new projects were launched on Cardano over the past week.
Cardano price is at a make-or-break point, and the altcoin is ready for a 40% breakout.
The weekly support and resistance levels for Cardano are $0.38 and $0.77. The price of Cardano is likely to witness a 40% rally in its price after a decline to support at $0.38. Cardano has completed two liquidity runs since mid-June 2022.
Cardano’s fractal revolves around liquidity collection and started with a run up to $0.527 in the run that started on June 19. On July 18, the first liquidity run started and resulted in a climb to $0.527. On July 22, the second liquidity run pushed Cardano to $0.54.
The next liquidity event is likely to push Cardano to support at $0.38 and a 40% rally thereafter. Since both liquidity events that occurred in Cardano’s price trend started at $0.47, a key support level for the Ethereum-killer.
A 40% price rally implies a run-up to the monthly resistance of $0.77. The positive developments in Cardano’s ecosystem and the rise in the number of projects being developed on the Ethereum-killer blockchain have fueled a bullish sentiment among investors.
ADA-USDT Perpetual Contract (Source: TradingView)
The maximum pain scenario implies a further decline in Cardano’s price after plummeting to a weekly support at $0.38. Cardano’s downtrend is likely to get extended in case of a bullish invalidation, a failure to cross the resistance at $0.55.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CQ. No information in this article should be interpreted as investment advice. CQ encourages all users to do their own research before investing in cryptocurrencies.
Continue reading on CoinQuora