Although the Bitcoin price continues to hold the $34,000 level, the risk appetite in altcoins seems to have weakened slightly. Those who still cannot believe in the rise are waiting for the right level to open their short positions. Will we see such a big opportunity from this region where those who sold short up to $34,000 will fuel the rise? Time will tell and the monthly closing is quite important for BTC. So, what is the situation specifically for ADA Coin?
Cardano (ADA)
It has increased since October 19th and reached the resistance area of $0.3. On the weekly chart, the price is trading above the $0.25 horizontal support area. The support level, which has been largely protected since the beginning of the year, is quite important. Despite a short-term support loss in June, the price managed to recover. However, ADA Coin is struggling to maintain higher levels.
Today, the price dropped to $0.284 and the bulls easily gave up in the resistance area. Cardano has more competitors compared to before and it should do more to stand out and maintain its position among the largest cryptocurrencies.
DJED was an important opportunity for the network. The mechanism of this algo stablecoin would cause an increase in demand for ADA Coin as the token gains attention. However, despite months passing since the stablecoin of Cardano ecosystem, it did not receive the expected interest. If DJED succeeds, a massive demand wave similar to LUNA Coin can be seen for ADA Coin, as you may remember the relationship between Terra’s LUNA and UST.
Charles Hoskinson, the founder of Cardano, who is considered unsuccessful by many, said that he is involved in this matter and strengthened the Djed stablecoin team. The news flow may make November 2-5 an important date for the Cardano Summit. Other than that, there is no significant development on the ADA Coin front.
ADA Coin Price Prediction
Readings on the daily chart show that the descending trendline was broken on September 18th. This resistance line was an obstacle that prevented the rise. However, the price still could not rise above the $0.3 area. The current situation is actually a long-standing issue that we have been drawing attention to for a long time, short-term investors are under pressure, and the ADA Coin price has been trading in a narrow range for a long time. Traders also prefer not to expect more from ADA Coin by taking positions at support and resistance levels.
Cardano no longer gives long-term hopes as before and has not experienced a demand surge after gaining smart contract capabilities. All of these turn ADA Coin into a short-term trading tool. If the price can surpass $0.3 and if there are good news about network upgrades, the $0.38 area can be tested. CryptoFaibik, an analyst, believes that with the breakthrough of critical resistance, the boring price movement will be left behind.
On the other hand, if BTC allows, it seems more likely that the price will be pulled back to the $0.24 support after being rejected from the resistance.
