The ADA short term price forecast seems to be quite bullish because yesterday’s wick down to $0.1277 will probably be the last for Cardano. On the higher time frame and the lower one, Cardano seems bullish so let’s read more about the analysis in the cardano cryptocurrency news.
Being in 8th rank, ADA is trading at $0.1328 currently with a 24-hour price change that shows a 5.50% decline. There’s a potential for another good long position with a minimum of 20% surge. The ADA short term forecasts show that the road ahead is bullish as Cardano formed a continuation pattern that has a bullish pennant pattern with an upside ranging from 20% to 100%. The triangle is the consolidation pattern that will provide momentum for the buyers to go further through. This can be seen as an accumulation zone for further upside.
The long position with a 2.47 risk to reward ratio with entry at $0.1301 and stop-loss at $0.1195 shows that the bullish case is possible. The target can vary and the position can be closed at $0.1564 which seems to be the 0.5 Fibonacci level giving a 20% upside forecast. Another target is the $0.382 fib level which is set at $0.2625 or 100% surge from the current price. With the proper risk understanding and leverage, it seems that this is the best trade for ADA in a while. Supporting the long positions can be seen in the RSI indicator as it shows a clear bullish divergence between the momentum indicator and the price.
The one-day chart shows a similar bullish bias for Cardano which was trending higher with higher lows and the lower highs that form a proper consolidation pattern. Even on the higher timeframe, the RSI indicator showed a clear bullish divergence in addition to the bullish pennant pattern. The long position from here seems like a no-brainer. The 50 DMA supported the last two dips so the bounce from the daily moving average will be a strong one.
Also, the Cardano’s project Catalyst will allow the community to propose a vote on a certain community project and proposal. The new Voltaire phase will introduce new governance features. Cardano will attend the scalability and smart contract improvements as IOHK is starting to implement the governance system on Cardano which will allow the community to vote on the issues related to the blockchain’s development and funding.
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