Cardano (ADA) has undergone a remarkable journey, as crypto analyst CrediBULL detailed in a recent X post. Initially, ADA experienced a meteoric rise from a mere $0.02 to a peak of $3.10, marking a 150x increase. This uptrend was characterized by a classic pattern of higher highs and lower lows, signaling robust growth. As of now, ADA is trading at $0.4564 marking a significant increase of 3.75% in the last 24 hour hours.
In a recent YouTube video, the analyst suggested that despite the steep decline, Cardano’s fundamentals might not be as grim as they appear. He pointed out that in crypto trading, viewing price movements on a logarithmic scale provides a more nuanced understanding of market dynamics, particularly after substantial price changes. This perspective reveals that even a retracement as severe as 99% could still be considered part of a bullish longer-term trend.
The discussion also delves into the intricacies of market phases, distinguishing between “impulsive” moves, indicative of strong market momentum, and “corrective” moves, which are more reflective of temporary pullbacks or consolidations. According to analysts, Cardano’s recent price actions suggest a corrective phase rather than the commencement of a new bullish cycle. This is evident from the three-legged upward movement from recent lows, which he argued lacks the characteristics of a genuine impulsive wave.
The analyst provided additional insights on the potential scenarios for ADA in which one possibility is that the currency is in a reaccumulation phase, preparing for another upward surge. Alternatively, it could be entering a distribution phase, indicating that the recent peak might represent a long-term top. The next significant support levels are identified between $0.012 and $0.020, which could serve as targets if the downward trend continues.
Adding a comparative analysis with Bitcoin, the analyst noted that while Bitcoin has shown resilience by maintaining a sideways trend, Cardano has seen further declines. This divergence could be pivotal for Cardano’s short-term price movements, especially if Bitcoin experiences another downward leg, which might exacerbate Cardano’s losses.
Despite the current challenges, the analyst remains optimistic about Cardano’s long-term prospects, suggesting that the significant corrections could present buying opportunities for long-term investors. He emphasizes the importance of strategic investment approaches, such as dollar-cost averaging (DCA), for those less experienced with the intricacies of technical analysis, allowing them to potentially capitalize on lower prices without overexposing themselves to market volatility.
While Cardano currently navigates through a turbulent phase, the insights provided by analysts highlight a blend of caution and optimism. The deep corrections are viewed not merely as setbacks but as potential setups for future gains, underscoring the cyclical nature of cryptocurrency markets and the opportunities they present to astute investors.
