Cardano’s 400% Rally Could Bring Huge Correction For ADA: Analysis

Cardano’s 400% price rally could bring huge correction for the ADA price, and the launch of Shelley will likely accelerate this trend. In our Cardano cryptocurrency news, we take a closer look at the price analysis.

Charts show a slight divisive outlook for the ADA price and some are warning of an impending correction in the near-term.  Cardano’s ADA had a great year and the price of the token only proves that. Since the start of this year, the cryptocurrency increased by almost 400% and since the March crash, more than 800%. As a result, ADA became one of the biggest winners on the market and surpassed Bitcoin SV, Litecoin, EOS, and Binance, reaching sixth place in the ranking. According to Messari CEO Ryan Selkis, Cardano’s 400% rally could be prolonged in the short term thanks to the launch of Shelley and the staking profits of the investors. The data from IntoTheBlock shows that there will be slight resistance for the asset to reach $0.146068.

There is interest from the buyers to bring the price to a level not reached since July 2018 which is set at $0.126155 due to the 12 thousand addresses that hold 805 million ADA, purchased at this price. The data from IntoTheBlock also shows that more than 75% of the addresses that hold the ADA coin are now profitable. In contrast, about 23% or 5000 addresses, show little losses. Analyst Nik Patel, known as the “altcoin trader” expressed a lot of optimism about ADA’s short-term price outlook and wrote:

“Turning to the daily, we can more clearly see the strength of the trend, with price now using that previous high at $0.11 as support for the next leg up. If we get a close above $0.14 on the daily, I’d expect the rally to continue on towards that $0.20 area.”

Other analysts don’t quite agree with this outlook. According to “cryptodude” Cardano was twice rejected on the weekly charts in the price range of $0.13 and $0.14. The analyst pointed out that the RSI for the past week reached an overbought level as you can see from the charts. In our latest Cardano cryptocurrency news, we saw that Cardano’s ADA is surely one of the best performers on the market, and with the launch of its Shelley mainnet, the price of the asset is expected to go even higher.