Cardano (ADA) price bulls are concerned with securing support amid volatility heightened by Bitcoin price crash. The uphill task in this downtrend turmoil for investors is to figure out the actions to take to get in at the right time before ADA begins its ultimate journey to $1.
Cardano Price Poised to Hit $1 In September
Cardano price holds above the critical support at $0.35. The smart contracts token is fundamentally strong based on the blockchain data. For instance, Santiment data reveals a major upturn in active users on the network from around 20,000 on August 22 to approximately 35,000 on August 27. This spike within a very short period reinforces Cardano as a competitive cryptocurrency project. ADA price tends to rally with increasing network activity, implying that a breakout to $1 is likely before the end of September.
Based on the market value realized value (MVRV) metric, which measures the relationship between the current Cardano price and the average price at which existing coins were acquired, holders are experiencing unrealized losses. Put more simply, investors are unlikely to sell ADA; instead, they choose to hold and even append to their existing holdings. The MVRV ratio drop below 1 calls on investors to buy intending to sell at a higher price.
Meanwhile, whales do not seem to be bothered by the downtrend in Cardano price. According to the supply distribution chart, addresses holding between 100 million and 1 billion coins added 130.5 million ADA from August 22. They currently hold 7.23% of the total supply. Such a spike in the risk appetite, even as ADA price cascades, hints at a bullish future.
ADA Price Technical Analysis As Key Support Holds
Cardano price uptrend depends on the robustness of $0.35 support, which coincides with the ascending channel’s lower boundary. The area also begins a bullish fractal likely to ignite a short-term rally to $0.42.
With the Relative Strength Index (RSI) heading into the oversold region, it might be prudent for traders to prepare to buy ADA. Some following signals will include a rebound from $0.35, supported by the RSI reversal from the oversold region. On the upside, traders will look for a breach of the channel’s resistance, breaking the bearish pattern and allowing the Cardano price to extend its run toward $1.
Traders must be ready to take the appropriate action should the current downside risks extend below the channel support. In that case, some may short the ADA price as it drops, while others could wait for support at $0.32 or $0.3 to buy ahead of the next recovery attempt.
Frequently Asked Questions (FAQs)
Cardano price faces high volatility as Bitcoin price crashed below $60,000.
Predictability is difficult, but fundamental and technical signals point to a potential rally.
Traders should pay attention to $0.32 and $0.3 support levels.
John Isige
John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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