Cryptocurrency strategist Michaël van de Poppe is analyzing Cardano (ADA), which has fallen by about 10% from the 7-day high recorded around the time its smart contracts functionality was added.
Van de Poppe says that ahead of the September 12th “Alonzo” upgrade which ushered in Cardano’s smart contract era, ADA had recorded impressive price gains before entering a consolidation phase.
“Cardano has been one of the strongest movers in the past month after the actual crash in May and the consolidation afterward. Since August, it has been rallying up towards a new all-time high. So should you be expecting another breakout to be happening after such a big run?”
The crypto analyst says that a “new impulse wave” for Cardano is only likely to begin after a period where the price moves sideways.
“I think that if you’re seeing a valuation of $100 billion of Cardano at this stage, it doesn’t make sense to expect the breakout to be happening at the actual event, given that the actual event was already priced in.
So what we’re seeing right now is that the price is going back towards equilibrium, towards the mean, having some consolidation before the new impulse wave can start.”
On the Cardano/Tether (ADA/USDT) chart, Van de Poppe says that the “very important support level” is around the $2 price, where an impulse wave is likely to begin after a consolidation phase.
“You should be looking at the range around $2 as a very important support level…
…from here to $2, I think you can just DCA [Dollar Cost Average] and then you’re getting ready to watch the new impulse wave. So after every big move, we’ll be having some sort of consolidation.”
On the Cardano/Bitcoin (ADA/BTC) chart, the crypto analyst says the level to watch as a possible entry point is around the 0.0000448 BTC ($2.14) price.
“So the levels that I’m watching at this stage crucially for Cardano to hold for the Bitcoin pair is still this region [0.0000448 BTC]…
If we break beneath, the final level that Cardano has to hold onto is the level around 0.000036 BTC ($1.72). If that one breaks, I think the overall impulse wave is gone. So in these regions, you’ll be looking to buy Cardano, or at least look to accumulate that position, if you are interested in the actual cryptocurrency. And when we drop beneath 0.000036 BTC, I think you want to be out.”
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Roman3dArt
