Cardano is a decentralized application platform provider that offers unique facilities to application developers. They can enjoy variable smart contracts and multi-asset ledger in their applications. ADA is the native coin of this platform that is used to store value and process transactions.
On June 12, 2022, they announced releasing of Ethereum Virtual Machines (EVM) alpha as a sidechain. It is compatible with Ethereum 2.0, so developers can transfer their applications between Cardano and Ethereum.
At the time of writing, ADA was trading at $0.5, consolidating on the support of $0.45. We think it is the right time for investment because the MACD indicator is neutral on the daily chart, supported by RSI. Though the candlestick is forming in the lower half of the Bollinger Bands, it will bounce back again.
In the short term, it is forming higher highs. It seems to be in a consolidation phase but will turn bullish when it crosses the $0.66 level.
In the long-term chart, Cardano price forecast is bearish because it has been in a downtrend since September last year. Though it is trying to form support around $0.45, technical indicators do not reflect any sign of bullishness. On the weekly chart, candle sticks are forming just over the lower line of the Bollinger Bands, while RSI and MACD are not strong.
Overall, the ADA token seems to be in a consolidation phase in the long term. It is a risky trade because the crypto market is volatile, but if you want to take this risk, you can cut the bear’s throat in the short term. However, you should invest the amount you can afford to lose.
The market sentiment is weak, so you should be careful about the price action. Try not to take risks with high capital. Keep quantity in control as it is not the time to try future-option in crypto markets.
