Cardano is currently in a downtrend, continuing to show bearish trends as its prices trend below $0.5. However, where many saw an altcoin that doesn’t have many prospects, crypto analyst FieryTrading believes the digital asset is giving investors the opportunity to get in cheap.
Cardano may exit the parallel channel
In an analysis on the TradingView website, crypto analyst FieryTrading alludes to Cardano’s ability to break out and enter a massive bull run. The analysis starts from a previous analysis where the analyst had pointed out that the Cardano Price had entered a parallel channel.
This parallel channel emerged with the top of the last cycle going to the top of the current cycle with a line drawn from the bottom of the last cycle when the lockdown caused cryptocurrency prices to plummet. Despite the crypto analyst first pointing out this parallel channel in 2023, they believe it remains valid, especially as the price continues to trend downwards.
At that time, the crypto analyst predicted that the ADA Priceif it left this parallel channel, it could rise up to US$35. This bullish expectation continues with the most recent analysis, albeit with price adjustment.
On Wednesday analysis, FieryTrading notes that there is still a possibility for the altcoin’s price to reach the top of the channel. In this case, the price would fully complete the move towards $30. However, the crypto analyst chart carries a target of $25, which would be a 5,600% upside from its current level.
Source: TradingView.com
ADA Bears Keep Control
Despite the optimistic outlook held by the crypto analyst, Cardano succumbed to bears. The price fell to $0.44 in the last day, indicating a drop of 1.38%. In a longer term, the ADA Price looks even worse, with a drop of almost 28% in one month.
However, despite this trend, the analyst still believes that investing in Cardano at this time is a risk worth taking. FieryTrading refers to this as “the down payment of a lifetime” that could guarantee good returns. Furthermore, the analyst assigns an R/R (risk/reward) ratio of 116, which is a good number.
For now, the ADA Price is still struggling to stay in the market. This isn’t helped by the decline in market sentiment, leading to a nasty 22% drop in its daily trading volume, according to data from Coinmarketcap.
ADA price at $0.43 | Source: Source: ADAUSDT on Tradingview.com
Featured image from Binance Academy, chart from Tradingview.com
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