After testing the range high at 1446 sats [$0.1337] Cardano seems to be heading south and has already depreciated by 10.48%. However, this dip is not all bad, as a small pump might be on its way. With the formation of a descending channel, ADA’s price is looking at a 4-8% surge, perhaps even 13% if the bulls pull through.
1-hour chart
Source: ADABTC TradingView
The above chart shows the price heading down towards the center part of the descending channel, which happens to coincide support at 1276 sats or $0.1179. This point could be the right opportunity to long ADA with a risk-to-reward ratio of 2.36 and 4.77. However, for the latter, the stop-loss could be less stiff to prevent any immediate crashes/slips.
Either way, there are three targets, 1327 sats, 1381 sats, and 1446 sats, the last one would yield an approximate profit of 13%, should ADA pump. With the RSI indicator heading towards support [36.18] as well, this long position seems more than likely to occur.
It should be noted that the moving averages [21 MA – orange] will act as a resistance for the initial pump, overcoming this would open up a path 1328 sats aka the first target, where the 100 MA [pink] will resist ADA from more advancement.
Any pump beyond this level would be a little hard to come by, especially considering, the 200 MA [purple], which will definitely hinder ADA’s pump and might even exhaust the buyers.
Altcoins in general
With Cardano sitting comfortably at the 7th position and a market cap of $3.133 billion, the coin has seen a 1.42% surge in the last 24 hours. The same can be said for altcoins, all of which [in 24-hour time frame] are flashing green; XRP up by 0.65%, BCH by 1.51%, LTC by 3.29%. Clearly, the alt season is in especially with Bitcoin pumping around 2-3% after weeks of inactivity.
