Cardano’s sideways price action has entered its ninth week and is likely to be continued, per market analysts. Assessing the token’s 7-day price trajectory, the altcoin is trading within a narrow range, signifying low volatility or lack of strong directional movement.
Based on the 0.382 fib (Fibonacci Retracement) or 63 cents reading, a potential price dip below the $0.63 level is on the horizon. Traders need to keep a close eye on the 0.382 level. For those new, Fibonacci retracement levels are the key technical metric used to identify potential support and resistance levels of an asset or stock.
Another crucial aspect is the white circle highlighted near the 63c level, and is also near the 200 SMA (simple moving average). This confims the ADA’s expected drop to around $0.63, reinforcing the overall bearish sentiment surrounding the token.
Despite the bearish outlook, market analysts believe that the current price levels provide an attractive entry point for retail investors. In scenario like this, savvy traders take advantage of the price slump and keep accumulating the token hoping for a price surge in the future. There is also a believe that $ADA is undervalued at these levels, further fuelling hope for a price rise.
Cardano’s Retail Investors Eye Accumulation Despite Downturn
Amidst the downturn, the silver lining is the 200 SMA, which is often seen as a strong support line. The price approaching this line, is considered a bullish signal to some traders.
Meanwhile, founder Charles Hoskinson recently dropped a bombshell by saying that the blockchain platform is keen on getting Ripple stablecoin RLUSD on Cardano. Currently, both the leading blockchain firms are at the discussion stage; if successful, this could lead to mass stablecoin adoption on the smart contract platform.