Cardano (ADA) saw a quick recovery of 16%, ending the week at $0.50 after dropping to $0.43 on January 23. The price dip was influenced by uncertainty in the crypto market following the BTC ETF approval. However, Cardano bulls quickly increased the price to $0.50 by January 27, sparking speculation of a potential move towards $0.60. It remains to be seen if ADA will break out or stay in a consolidation phase.
In a recent update, analyst Crypto ZX has provided its analysis about the current status of Cardano (ADA) amidst the broader cryptocurrency market. The analyst discussed the recent positive movement in the market, primarily attributed to Bitcoin’s rise above $42,000.
As of the update, Cardano increased over the past 24 hours, with the current price at $0.49. The market cap was $17.4 billion, and the 24-hour trading volume was $266 million.
Crypto ZX addressed concerns and FUD (Fear, Uncertainty, Doubt) surrounding Cardano’s price. The analyst also discussed a recent pullback but shared a positive outlook, pointing out ADA’s potential for a rebound.
The price analysis showed a downward trajectory since the 11th of the month, with a major rejection at a critical resistance level. After failing to establish support above this level, Cardano experienced a drop, reaching a low of $0.45.
Crypto ZX attributed Cardano’s decline to Bitcoin’s retracement to $39,000, filling a CME Gap. The analyst also pointed out Bitcoin’s subsequent recovery and the potential for ADA to reclaim levels above $0.52 if it breaks a current resistance.
The analysis also touched upon market sentiment, noting the negative comments surrounding Cardano. Crypto ZX encouraged believers in Cardano’s fundamentals to consider dollar-cost averaging, pointing out a 40% potential gain based on Fibonacci retracement levels. The analyst expressed optimism about Cardano’s future performance.
