Cardano (ADA) Likely To Shoot Up Against Bitcoin (BTC) By Weekend

Cardano (ADA) is not an ordinary blockchain project. In fact, when it entered the scene, a lot of people thought it was game over for Ethereum (ETH). That has not happened so far as the team has mostly been focused on development instead of marketing. Ledger wallet integration for ADA is expected in the near future. Moreover, exchanges like Binance and Coinbase have added ADA pairs that have made Cardano (ADA) to fiat and crypto transactions a lot easier. If the cryptocurrency ends up being listed on Ledger before the next bull run, we might see demand for this coin skyrocket in the years ahead. The daily chart for ADA/BTC shows that Cardano (ADA) is one of the few large cap coins that have been hit this hard by the bear market.

The daily chart for ADA/BTC also shows that Cardano (ADA) is one heartbeat away from forming a golden cross which could result in a strong move to the upside that might last towards the end of the week. The reason we do not expect this move to last longer is because Cardano (ADA) like most cryptocurrencies is overbought on longer time frames and has yet to find its true bottom for this cycle before the next bullish cycle can begin. That being said, investors who would not want to risk this accumulation opportunity over another short term drop might find it best to start loading up. That being said, any accumulation at current levels should be made with the realization that the price may end up falling further in the weeks ahead.

However, before that fall a big move to the upside is expected and traders who want to profit off that rally may find this a good time to go long. The daily chart for ADA/USD shows that the price is holding up strongly above the 50 day moving average. It does not face any major resistance to hinder its break out towards the top of the symmetrical triangle at this point. However, it is very likely that we may see ADA/USD face a strong rejection at the 200 day moving average after which it is expected to decline further to find its actual bottom.

One thing to bear in mind is that it is easy to become pessimistic during bear markets. Prolonged periods of downturn have a way of influencing our minds to believe that the worst may yet come. However, it is also a fact that nobody knows when the market is going to top out or bottom out. By the time most people realize it is the top, the price is trading way below the top and by the time most people realize it is the bottom, the price is trading way above the bottom. It is therefore important to have a realistic trading or investing strategy that takes into account all the risk factors and allow for dollar cost averaging at different points to get a good average price for long term.