Issued on: 16th May’23
Valid upto: 21th May’23
Token: ADA
Category: Layer 1 Blockchain
Market Cap: $12,784,316,993
Circulating Supply: 34,852,563,345
Total Supply: 35,793,946,862
Price Update: Cardano (ADA) is a proof-of-stake blockchain platform, which facilitates fast, secure and low-cost transactions by leveraging the unique properties of blockchain technology. ADA price at the time of writing (16th May, 16:30) is $0.367 with 24-hour trading volume of $175,580,465. ADA price is down by 0.88% in the last 24 hours according to coinmarketcap.com
On-Chain Analysis: On analyzing On-Chain data from Sanbase, the 30-day MVRV model showcases that short-term buyers of ADA may be facing losses, which could present a favorable opportunity for long-term holders to make purchases at lower prices “opportunity Zone”. This aligns with the technical analysis and indicates a potential increase in buying activity. The historical track record of this “opportunity zone” has shown it to be a reliable indicator of price recovery in the past.
Source: Sanbase. Chart sourced from 3rd party public repository.
Technical Analysis:
Source: Tradingview
Analyzing the above Chart:
- ADA has been receiving significant backing from an upward trendline that originated in early 2023 and gained further support in mid-March.
- The price range of $0.354 to $0.36 is currently serving as a horizontal support level, aligning closely with the upward trendline. Thereby becoming a strong support zone.
- As the support zones are identified, on the upside 55-EMA (Yellow Line) and 200 EMA (Blue Line) acting as the upside potential resistances.
- A Long Trading strategy can be assessed between $0.367-$0.355, with invalidation below $0.349.
- On the upside, one can see 4-8% rise towards $0.383 as first level, and if markets are sustained we can also see moving towards $0.397.
- It would seem that one should maintain a balanced risk to reward ratio and check use of leverage and position size to ride out current market conditions.
Note: ADA is now available in the futures market in both Go and Pro apps with up to 15x leverage.
Trade ADA in Futures Market at CoinDCX
Trade ADA in Futures Market at CoinDCX Pro App
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