Cardano long term price analysis: August 16 - OhNo "WTF" Crypto

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Cardano long term price analysis: August 16

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Cardano has seen reduced momentum in the past month. The price has been range-bound [between $0.156 to $0.262] for over a month. With the mainnet launched, total ADA staked has now hit 12.49 billion aka $1.74 billion with 31,000 delegators. The fundamentals of ADA look strong with the successful launch of the mainnet.

Cardano 1 -day chart

ADAUSD TradingView

From the chart, Cardano is range-bound and needs a huge volume to break out of the resistance at $0.156. Supporting Cardano from stepping lower is the 50-DMA [yellow] acting support at $0.125. If need be, another support at $0.1205 is present.

The range-bound price-action seems to be due to active rejection at the 0.5-Fibonacci level at $0.156. Hence, breaching this would be bullish for Cardano.

Looking at OBV and the price, there is a clear formation of an exaggerated bullish divergence. Hence, a long position here would be an apt trade to take. Entry at $0.1373 seems doable with a sizeable gap between this and the stop-loss at $0.1108 would be the best play.

Considering the wicks that have constantly tested the aforementioned support at $0.1205, setting the stop-loss below this level would be the best way to go. The current position of ADA is an accumulation zone before the surge continues.

Based on the above entry and stop-loss, the take-profit or the target level for ADA is at the 0.382-Fibonacci level at $0.2625, which is a massive 88.58% surge.

The only kink in this prediction is the clear formation of the second bottom in the OBV indicator [on-balance volume]. If the second bottom sees a good bounce, then entry at the above-mentioned levels would be perfect.

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Akash Girimath, Khareem Sudlow