A popular crypto analyst recently offered a comprehensive review of Cardano’s ADA token to his 152K YouTube subscribers. As he geared up for the Cardano Summit in Dubai, he shared critical insights into ADA’s current price trends and the broader market’s influence on its future trajectory.
The analyst, who uses the pseudonym “Cheeky Crypto,” expressed concerns about ADA’s immediate future, suggesting that the token has not yet found its market bottom and may be poised for a further downturn. He pointed out that ADA’s price movement is showing a bearish pattern, with the token failing to break above the daily 200 EMA—a key resistance level.
He also emphasized the impact of Bitcoin’s market movements on altcoins like ADA. With indications of a major correction on the horizon for Bitcoin, the analyst predicted that a drop in Bitcoin’s value would likely trigger a corresponding downturn for ADA.
The price target set by the analyst for ADA is in the range of 15 to 18 cents, which would mark a significant decline from its current standing at approximately 32 cents. He correlated this potential drop with Bitcoin possibly retreating towards the $20,000 mark by year’s end. Despite this short-term bearish stance, the analyst remains optimistic about ADA’s long-term potential, citing the robust fundamentals of the Cardano platform.
He advised investors to consider dollar-cost averaging to build their ADA holdings during the dip and to engage in staking, specifically mentioning the option to stake with the Cheeky Crypto stake pool to earn passive rewards and offset the impact of the price decline.
The analyst also shed light on liquidity issues within the Cardano ecosystem, noting that profit-taking by whales and some stake pool operators is affecting ADA’s liquidity, which could lead to price instability.
In the DeFi space on Cardano, he observed an increase in the total value locked (TVL) when measured in ADA, suggesting a shrinking circulating supply that could support price recovery in the future. He underscored the growing demand for ADA, driven by the development of over 1,200 dApps on the Cardano network, which is expected to enhance the token’s utility and attract new users.
In summary, the crypto analyst’s video conveyed a cautious outlook for ADA in the short term, with a potential price crash on the cards. However, he balanced this view with a confident vision of Cardano’s long-term prosperity, encouraging his audience to stay informed about market developments and to strategize their investments accordingly.
Featured Image via Unsplash
Source: Read Full Article