Cardano (ADA) Nears Key Level As Analyst Eyes Over 100% Upside – Details

Cardano is finally approaching a make-or-break moment. Nearing $0.33, ADA is closing in on a key support level within a falling wedge pattern—a typical harbinger of a likely bullish reversal.

If Cardano’s price increases as much as 15%, as crypto price prediction platform CoinCodex believes, the price gain of Cardano might reach up to $0.380 by September 18, 2024. Therefore, the general market sentiment has remained cautious on ADA.

This cautiousness has been more general within the overall market, with the Fear & Greed Index currently standing at 28, reflecting a sentiment recognized as “Fear.” It would, therefore, seem that investors are increasingly becoming wary and gradually moving into conservatism. The CoinCodex forecast offers some hope, but the technical indicators suggest a rough and uncertain path for Cardano.

Cardano: Critical Support Zone

Presently, the value of ADA is pushing the downside limits of a well-drawn falling wedge structure. The said pattern holds significance in predicting a potential bullish breakout if the noted support manages to restrict further retreat. The past attempts to conquer the level were well cushioned by buying interests, which could help springboard the value of ADA.

In such a case, if ADA manages to bounce off this support, a significant rally might be ahead. Crypto analyst Whales_Crypto_Trading proclaims that a breakout above the descending resistance could see the cryptocurrency gain over 100% and up to 120%.

This might move the price of ADA into the $0.67 to $0.75 zone, which corresponds with important areas of resistance drawn out from previous highs. Of course, for this to take place, the support level would need to hold in the coming days.

Bearish Sentiments Still Linger

Though a rally could be possible, the market sentiment for Cardano is still bearish. The reading of the Fear & Greed Index checks in at 28, which depicts most investors as being overly wary. Additionally, ADA had only 11 green days in the last 30, for a success rate of 37%. When adding in the 10% volatility in price, this defines a scenario of uncertainty.

The prediction of a price rally gives a bit of hope, although the technical indicators are way less than enthusiastic. More bearish sentiment and the low levels of confidence among investors might seem to suggest that this may not exactly be the time to go long on ADA or increase positions.

To Invest Or Not

With the current market conditions in mind, one finds it very hard to spot an investment in Cardano. The potential is there for a high price increase, but in general, technical analysis tends to lie toward being a bit cautious. The falling wedge could be calling for a breakout into bullish sentiments; however, the bearish sentiment and the low reading on the Fear & Greed Index suggest that the road ahead is going to be bumpy.

Cardano’s technical setup looks to be on track, even though the level of sentiment in the broader market remains cautious. In this regard, ADA investors need to tread with maximum caution and preferably wait for some clearer signals of a possible trend reversal before opening new positions.

Featured image from Gemini, chart from TradingView