Just like all the altcoins in the cryptocurrency market, the value of ADA fell back towards a previous support area. The recent crypto crash was a harsh one but expected from technical traders. As highlighted in this article, broken uptrends are a sign of reversals. Cardano was an exciting project for so many crypto enthusiasts. In fact, prices soared in 2021 to almost $3, but the crypto crash brought prices down to $1.17. Now that we are back towards the support area, can we buy Cardano? In this Cardano price prediction article, we’re going to see why a buy trade might be a good one.
Cardano Prices fell more than 60%
It is no surprise that ADA lost in valuation heavily. In a course of 3 months, ADA prices fell from a high of almost $3 to a current low of around $1.17. On the other hand, this price is very close to the psychological price area of $1. Additionally, prices in the past tended to bounce back upwards on multiple occasions.
In figure 1 below, we can clearly see how prices reversed upwards every time prices reached this area. We did have occasional fakeouts that reached $0.92, but this only presented strong buys. Bear in mind that areas are very subjective, but the general consensus seems to agree on an area between $1 and $1.16. The price jumps after reaching such a level on average were between 20% and 40%.
Cardano Price Prediction – Can you Buy ADA Today?
The buffer zone of ADA is a bit wide, representing a 15% delta in prices. That’s why considering to open any trade is very subjective and depends on the trader’s risk tolerance and target.
The risk tolerance determines how much the trader is willing to lose, while the target determines how much the trader wants to win. Easy right? Let’s lay out 2 trade setups that suit both risky and conservative traders.
- You can open a trade at the current $1.16 price, with a stop loss just below $1. Your target would then be around $1.5, having a risk/reward ratio of 3.78.
- On the other hand, you can wait for a further dip towards the $1 just to make sure that the downtrend is over. If the market corrects itself from this price, you would have missed the entry, and you’ll have to enter at a much higher price, say around $1.2.
The Crypto Market at a Glance
In the past 24 hours, the cryptocurrency market looks like it is on the verge of a reversal. Prices barely changed upwards, and this might be a good sign. Most altcoins reached their strong support levels as in the case of ADA. The top gainers were IMX, ROSE, and ZEC gaining respectively 16%, 9%, and 8%. On the other hand, GNO, ONE, and YFI lost respectively 9%, 7%, and 5%.
1- Bitcoin (BTC) : + 0.17%
2- Ether (ETH) : + 0.88 %
3- Tether (USDT) : 0 % (surpassing BNB)
4- Binance Coin (BNB): +1.49 %
5- Solana (SOL) : + 1.14 %
6- USD Coin (USDC) : + 0 % (surpassing ADA)
7- Cardano (ADA) : + 0.02 %
8- Ripple (XRP) : + 0.34 %
9- Terra (LUNA) : + 3.10 %
10- Polkadot (DOT): + 3.33 %
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