Similar to other top cryptocurrencies, ADA’s price fell on September 13th, despite the fact that the Alonzo hard fork upgrade that introduced smart contract functionality had just completed.
ADA price fell 9.3% to an intraday low of $ 2.30, in part due to sentiment among profit-taking traders after the coin rose over 1,200% since the start of the year. Additionally, the intraday sell-off also comes when the overall market declines, with top tokens like Bitcoin and ETH down 3% and 6.3% respectively.
4-Hour ADA Price Chart | Source: Tradingview
It’s also worth noting that the downward move came when the Cardano platform first implemented the long-awaited smart contract feature on the platform’s public blockchain. Alonzo was designed to tap into the booming DeFi and NFT sectors as users grapple with more expensive fees and slower transactions on the leading Ethereum smart contract platform.
Hence, many people predict the possibility of a continued boom in the ADA market. In it, Value Trend, a financial analyst at Seeking Alpha, says hope ADA will hit $ 10 if Cardano crashes Ethereum to become the leading smart contract platform.
Overall, the trust helped ADA generate strong returns in the days leading up to the Alonzo upgrade. On July 20, the pair was trading at just $ 1. Then, on September 2, the value rose to a record high of $ 3.16, up 200%.
The bullish continuation signals still exist
Bullish assets tend to consolidate sideways or down after a sharp move up, mainly because some traders choose to take profits. At the same time, investors with long-term bullish prospects are buying assets from “weak hands” in order to build their long-term investment strategy.
The ADA chart below suggests a similar phase of consolidation after an increase of more than 200%. Therefore, the likelihood that ADA will continue on its uptrend remains high.
Price table ADA Daily and bull flag | Source: TradingView
Looking at the above chart, the rectangular pattern appears like a bull flag. As a general rule, the profit target in a bull flag scenario is the length of the previous uptrend.
Price table ADA Daily and target Bull flag | Source: TradingView
A break above the bull flag’s upper trendline (at $ 2.93) can lead ADA towards $ 4.50.
Additionally, ADA needs to keep the price above the 50-day exponential moving average (50-day EMA, red wave) near $ 2.27 to temporarily hold the uptrend. Falling below the bull flag and the 50-day EMA risks pushing the ADA down to $ 1.92, which has been a support line since mid-August.
Analysts have even shared more detailed price targets. In particular, Rautakansleri recognizes a “double-top” scenario and adds that traders are selling the truth.
#Cardano Smart Contract Upgrade As Far As I Predicted: Sell The News.
The price also made a double high and is now making a lower low. If it breaks USD 2.25, we will go further down.
Soon $ 1.20? pic.twitter.com/riFirqmCgz
– Rautakansleri (@rautakansleri_) September 13, 2021
“Update Cardano’s smart contract as much as I predicted: Sell the truth. The price also made a double high and is currently drawing a lower low. If $ 2.25 breaks, ADA falls even more. Soon $ 1.20 again? ”.
On the flip side, analyst Cerbul said the current drop in prices was not due to a “sell the news” mentality, noting that more capital from the DeFi sector will pour into the Cardano ecosystem.
“ADA: Selling the truth? Recently Cardano launched the Alonzo upgrade and at the same time the seller appeared. It appears that the ADA ecosystem is only in its early stages. Imagine if DeFi is enabled. Money will flow in. Accumulation”.
The source: Cerbul
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According to Cointelegraph