Cardano (ADA) has struggled to maintain its momentum in the past few weeks, and the hype surrounding the launch of the Shelley mainnet upgrade began to fade.
This had a serious impact on the price of ADA, which was struggling to sustain the intense uptrend it was previously caught in.
However, analysts note that the cryptocurrency is finally getting closer to what has been dubbed the “sweet spot,” which could ultimately allow it to reverse its multi-week decline and build a new leg up.
An analyst aims for a 30% recovery in the short term, which will only occur if it can stay above critical levels.
That being said, there is a possibility that investors could take profits and convert them into projects with greater short-term momentum as the tide of announcements that previously propelled them has now dissipated.
Cardano’s strong multi-month uptrend remains in place while analysts are looking for crucial support
At the time of writing, Cardano is trading a little over 3% at its current price of $ 0.11. This is a notable rebound from recent lows of $ 0.10 set at the end of yesterday’s sell-off.
It’s important to note that this sell-off turned out to be incredibly short-lived and came about as a result of Bitcoin’s slump from $ 11,600 to lows of $ 11,150.
This move has created shock waves across the market, and while BTC has made up for any losses, ADA is still trading slightly below its daily highs of $ 0.112, set just before yesterday morning’s slump.
One analyst now notes that he is looking for a dip towards $ 0.09 before jumping back into cryptocurrency as he describes this as a “sweet spot” for long-biased swing trades.
“Wait 7 long weeks for ADA. In search of the sweet spot. “
Image courtesy of Cold Blooded Shiller. Chart over TradingView.
Dealers: If you hold this key price level, ADA can see a 30% increase
Another trader recently stated in a tweet that the cryptocurrency is currently above a crucial medium-term support level it has formed against their BTC trading pair.
He notes that a sustained hold above this level could be enough to propel Cardano up to 30% versus BTC in the short term.
“Skipped the first point of interest, but already reached the crucial level. If we keep green, we might see a 30% jump, ”he explained.
Image courtesy of Crypto Michael. Chart over TradingView.
Where the next Cardano trends lie may depend on whether the short-term price movements of Bitcoin and Ethereum continue to provide an ideal backdrop for altcoins to recover against.
Featured image from Unsplash. Charts from TradingView.