Like every other alt in the market, Cardano had a pretty decent week. ADA posted a weekly gain of over 12% and was trading at $ 1.43 at press time. Cardano has to a certain extent decoupled from the general market trend. Even if the old man couldn’t completely protect himself from the recent bloodbaths, he was always able to recover a little.
At this stage, however, a Cardano pump “annoys” the market. According to Dan Gambardello of Crypto Capital Venture:
“Cardano is just teasing us. We have to break down and then return to the apex area. “
Notably, the ADA chart showed a prominent descending triangle at the time of writing. It is worth paying attention to the details of the chart as the price candles were breaking above the upper trend line at the moment. However, there is certainly potential for setbacks within the top of the trendline.
That said, ADA is in an ascending triangle in the short term and the chances of the Alt moving towards its $ 1.7 and $ 1.9 breakout targets appear to be improving.
“The story is the same. There is an upward momentum in Cardano and we are looking for an upward breakout. “
The case for Cardano keeps getting stronger to switch to $ 1.70 – $ 1.90 ADA pic.twitter.com/QC5A51ROzn
– Dan | Crypto Capital Venture⚡️ (@cryptorecruitr) July 3, 2021
Cardano is currently in the middle of “so much resistance”. The Alt would have to break above the following levels to continue its uptrend:
a) The ATH range for 2018 is around $ 1.33
b) the significant psychological barrier of USD 1.50 and
c) The 50-day moving average around $ 1.56
However, should Cardano manage to break through the resistance, the market may see a “very real reversal in the game”. The actual test for Cardano is arguably in the $ 1.56 range. When Cardano returns via this area it will be huge. The analyst added:
“We are right in the middle of this storm of resistance for Cardano.”
Additionally, the ADA / BTC pair was consolidating on the weekly chart and, according to the analyst, there appeared to be “plenty of room” for an uptrend. He further stated:
“Even if there is a sustained downtrend in this entire market and Cardano suffers against the BTC, say up to 45-50% downtrend, Cardano would still hit a higher macro low for potential continuation in the long run …”
Another important factor to consider here regarding Cardano is the weighting of Grayscale’s digital large fund. The Alt has the third highest weighting (4.26%) and stands next to market giants such as BTC and ETH. Dan Gambardello pointed out that the weight would likely get heavier over time. He said,
“I really think it will be weighted even more, in favor of Cardano, if we get into smart contracts and continue to build Cardano.”
In this phase, institutional investors are likely to be invested indirectly in Cardano. These big players in the market will definitely play a prominent role once the uptrend begins. Highlighting the same, he said,
“They are very easy to get on and off. When Cardano takes off … we’re going to let that institutional demand jump on these pumps. That’s for sure. I think we’ll see pumps like we’ve never seen for Cardano on the zoomed out map. “