The Cardano price has gone nowhere in the past two days. ADA is trading at $1.3260, which is about 42% above its lowest level last week. Its market cap is hovering at $41 billion, making it the 6th biggest cryptocurrency in the world.
Cardano news: For starters, Cardano is a blockchain project that was developed in 2015. The project is relatively similar to Ethereum in that it helps developers to build decentralized applications, also known as DAPPs.
Recently, Cardano managed to introduce the concept of smart contracts, which enable people to build Decentralized Finance (DEFI). ADA, on the other hand, is the native currency of the Cardano ecosystem. It does what Ether does for the Ethereum network and what BNB does for the Binance chain network.
Last week, ADA price declined sharply as the excitement of the Coinbase listing waned. It fell by more than 40% from its all-time high. This week, though, the currency has bounced back, in what is known as a relief rally.
Other currencies like Bitcoin have also risen. However, most currencies are still wavering as the market digest the latest Fed decision, where it left interest rates and quantitative easing policies unchanged. So, what next for ADA?
In my last ADA price prediction, I wrote that the currency would rebound to $1.55. That has not yet happened, and looking at the four-hour chart, we see that the currency has found a major resistance at $1.3552 level. At the same time, Cardano has formed a bullish pennant pattern, that is shown in black. This pattern tends to lead to a bullish breakout. Like VeChain, this pattern has happened at the 38.2% retracement level.
Therefore, in my view, I predict that the Cardano price will have a bullish breakout, with the initial target being the 23.6% retracement level at $1.4080, which is about 5% above the current level. This prediction will be invalidated if it moves below the support at $1.2500.
Follow Crispus on Twitter.
This post was last modified on Mar 02, 2022, 11:44 GMT 11:44