Cardano has had one of the best performances in the crypto market during 2021. The cryptocurrency scored significant turning points and climbed its method up the ladder of the crypto leading 10 by market cap.
Currently sitting at the third position, after surpassing DOGE, XRP, BNB, Cardano (ADA) trades at $2,37 with a 2.1% loss in the daily chart. In the weekly chart, the 3rd crypto by market cap records a 5.8% loss.
Analyst Justin Bennet has been closely following ADA’s price action. The cryptocurrency has actually seen a great deal of motion throughout September with a considerable pullback on the 7th, followed by a fairly fast healing into the high location of its present levels.
At that moment, ADA stood at around $2.70 with support at $2.60, $2.47, and $2.30. As Cardano continues its drop, the last challenge for the bears stands at the latter assistance mark.
Bennet claims that if this line of defense is lost, ADA could rapidly drop to $2. The cryptocurrency just recently saw the “intersection of ascending channel support and a horizontal level” because it began its healing after the crash on the 7th. The expert stated:
I still think there’s a good chance we see ADA trade to $2 this month. However, as I’ve stated for the recently, it’s going to take a day-to-day close listed below $2.30 to validate the breakdown.
Alternatively, if the bulls retake higher levels, ADA could resume its upward trend. However, Cardano has actually been moving listed below a pattern line formed in the previous days, as suggested by the chart below, and promises that it might increase its drawback threat throughout the weekend.
What Bitcoin Could Signal For Cardano (ADA) In The Short Term
In the crypto market, most of the assets increased their correlation with Bitcoin as big moves to the upside or downside occur. Cardano might take advantage of this phenomenon, as ADA sits at a crucial point, or it might see itself gone back to the $1 levels.
The next days could be crucial for the entire crypto market, as Bitcoin’s price action could determine if the bulls or bears are in control. Bennet said:
A weekly close back inside that variety wouldn’t be excellent, however an absence of macro greater highs suffices. If we’re in a bull market, we should see Bitcoin take out $53k, $65k, etc. Simple as that.
Conversely, there is one circumstance where Bitcoin might see more gains as altcoins like Cardano (ADA) bleed. There has been growing rumors about the possible approval of a BTC ETF, this could give Bitcoin a fresh inflow of capital flow, as analyst Pentoshi said:
I do believe we will see more capital inflow into Bitcoin specifically as ETF talks warm up over the next month. It doesn’t mean there won’t be outliers and opportunities in alts. naturally, there will be. But the word itself “Alt season” indicates seasonality which implies something that isn’t all year.
In that sense, the analyst recommended investors keep track of the Bitcoin dominance for risk management. Q4, 2021, methods and financiers appear to feel more unsure about the instructions of the crypto market.
