Disclaimer: The results of the following analysis are the sole opinions of the author and should not be construed as investment advice
Cardano is ready to lead the indictment for a multitude of tokens dubbed “Ethereum Killers” and certainly makes a good argument for itself. With numerous projects in development after the Alonzo hard fork, the Be optimistic in the future.
However, at the time of going to press, ADA appeared to be battling some selling pressure. As highlighted in a previous article, a payout phase was looming, with investors holding on to profits. This article will take a look at what the ADA needs to do to maintain its bullish thesis and negate a bearish outlook.
At the time of writing, ADA was valued at $ 2.47 and had a market cap of $ 78.89 billion.
Cardano daily chart
Despite some lower lows set by ADA over the past week, sellers respect the 38.2% Fibonacci level that has not been broken. If ADA stuck to this trend while some of their indicators reset their positions, the next up cycle would be in place.
Before the fourth quarter of 2021 closes, long-term goals at the Fibonacci levels of 138.2% and 161.8% could be achievable, provided projects built on the Cardano platform have little to no problems.
For this result, however, it is imperative that ADA stay above the key levels. Additionally, a closing price below 50% Fib and $ 1.88 would open the floodgates for a longer market decline.
The RSI was in stabilization mode after steadily declining from overbought levels. Such a correction was healthy before ADA started her next leg up. Even if the MACD has fallen from record levels, it still has to close below equilibrium – a good sign.
After all, the Chaikin Money Flow has seen higher lows since the beginning of April. Even if the index threatened to drop below the midline due to weak capital inflows, it is expected that it will rebound from its lower sloping trendline.
In order to hold its own above the Fibonacci levels of 138.2% and 161.8%, ADA must hold out above a few key areas. This would allow its indicators to take back bullish positions after selling pressures fizzled out.
By then, the 38.2% Fibonacci level would be key to ADA’s development.