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Cardano long-term price analysis: 30 August



XRP, DASH, and COMP price analysis: November 05
Source: Pixabay

Cardano’s descent has been quick and steep but the coin looks primed for a reversal. At press time, the coin needed to drop to immediate support before it can actually reverse the downtrend.

Dropping from the 8th rank, ADA had a market cap of 3.58 billion and had seen an 8.1% decline in the past week and a 1.5% surge in the last day. The drop in its rank is perhaps due to the quick surge of Polkadot.

ADA 4-hour chart

ADAUSD TradingView

The Chuvashov fork can be seen on the downtrend with a fork emerging from the point “2” and connecting to “3”. The line between 2 and 3 [green] will decide if Cardano can actually reverse the trend. The initial efforts for this reversal can be seen as price developed a higher low while OBV [on-balance volume] printed a higher high. This bullish divergence initiated the reversal, however, the continuation of this reversal hinges on price breaking the 2-3 line.

Hence, the first thing to expect is the retracement from the fork to reach the downtrend line [blue]. If the price bounces from here and closes above the green line, then a reversal can be expected to happen in full-force. If not, another retracement can be expected.

Therefore, opening a long position from the support at $0.11238, [yellow dashed line] albeit risky, can be used to maximize profits. The entry can be at this support with a target at $0.12711 aka a 13% surge with a stop-loss at $0.1090.

All-in-all, the continuation of the downtrend seems less than likely for ADA, especially considering its sideways movement for over 40 days. With proper leverage and stop-loss, the profits can be more than doubled with the current set up for ADA.

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Akash is a full-time cryptocurrency writer and an analyst at AMBCrypto. He is an engineering graduate with an avid interest in finance and economics. Attracted to the chaos of trading, Akash has invested in BTC, ETH and XRP for educational purposes.