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Quick analysis of the situation
Well, well, well, if it isn’t our old friend Cardano (ADA), sneaking back into the spotlight like a cat with a fresh catch. Charles Hoskinson, the face behind this intriguing altcoin, has asserted that ADA is poised to steal the crypto show. And no, we’re not talking about a cameo role — think blockbuster leading man vibes.
ADA’s Support Hold: The Plot Thickens
After a brief market rally, ADA did what might be equated to the classic backflip of a seasoned gymnast, settling into a 4% retrace over the last 24 hours. Clearly, trying to regain that elusive range high has been like trying to convince your cat to take a bath — it just isn’t happening! Ever since July, Cardano has been confined to the tight and tumultuous trading range of $0.72-$0.96. It even flirted with a local high of $1.01 last month, giving hopes (and maybe a few heart palpitations).
Now, amidst this perplexing dance, ADA has managed to cling on to the $0.85-$0.90 zone as its safety net. In a recent analysis, Sebastian — a not-so-cryptic analyst — dropped a truth bomb: ADA must start setting those higher highs or risk slipping into a potentially tragic head-and-shoulders pattern. But fear not, for ADA is perched atop an ascending support trendline, and it has been happily bouncing from it like a kid on a trampoline.
Potential Pitfalls and Big Dreams
Of course, all good things come with a caveat. If our dear ADA fails to defy gravity and descends from that support trendline, we might be looking at a trip back to the macro support zone nestled comfortably between $0.50-$0.60. Not quite the vacation destination we’d hope for, right?
On a sunnier note, the enigmatic Altcoin Gordon pointed out that ADA recently broke out of a multi-month descending resistance. The moment ADA reclaimed the $0.85 sweet spot, the cryptocurrency seemingly gave itself the green light to make waves. And by waves, we mean possibly embarking on a “HUGE” upside journey. Grab your life jackets!
A Nostalgic Q4 Showdown?
Looking ahead, our favorite analyst, Crypto Kid, has a hunch that the Q4 seasonality could hold a déjà vu experience for ADA, reminiscent of its explosive October/November 2024 rally. Back then, Cardano blasted off to an impressive 270%, soaring to its three-year high of $1.32. It seems like history might just be on repeat, with Cardano retesting those levels over the past two months like a college student going back to his old favorite bar.
The ETF Effect: A Game Changer?
Now, let’s talk about the big shiny potential: Cardano ETFs. In a recent post, Hoskinson boldly claimed that Cardano is “going to break the internet.” We’re still waiting for the details, but one could argue that the surge of crypto-based Exchange-Traded Funds (ETFs) is worth packing your party hat for.
Grayscale Investments just launched the Grayscale CoinDesk Crypto 5 ETF (GDLC), which has Cardano riding shotgun alongside Bitcoin, Ether, and a few other cool kids. The SEC even approved Grayscale’s application to convert its Digital Large Cap Fund into an ETF. While the SEC drags its feet with a decision on a spot ADA ETF, predictions are looking optimistically spicy: the odds of approval shot up from 79% to a sizzling 91%.
As the fourth quarter approaches and the buzz around crypto ETFs grows, we might just find ourselves in for an exciting climax.
So, here we are, Cardano is currently trading at $0.89, having adjusted by just 1% over the week. Are we witnessing the calm before the storm? One thing’s for sure, ADA is keeping us all on our toes, and those cats are getting more precious by the day!
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
Image(s) are provided by Unsplash and/or other free sources. They are illustrative and may not represent the content truly.
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Please, behave!