Cardano Technical Analysis (November 2021)

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Cardano

Cardano is a decentralized blockchain that launched in 2017. The co-founder of Ethereum, Charles Hoskinson, is the creator. Cardano’s mission is to become the most environmentally sustainable crypto with a blockchain network that is easily scalable.

Cardano’s mining process consumes less energy compared to other Cryptos. The native currency of Cardano is the ADA digital token. The token gets its name from the first computer programmer Ada Lovelace. The ADA is an open-source platform. Thus anyone can develop it further.

Cardano Market Analysis

Cardano launched around January 2017 at $0.0024 and was listed on the Crypto exchanges from October 2017 for $0.002. At the time of writing, Cardano (ADA) is trading at  $2.13 with a daily volume of more than $3.7 billion and a market cap of more than 470.5 trillion.

The number of ADA coins in circulation is about 33.3 billion coins, with a maximum supply of 45 billion ADA coins. You can buy Cardano from the major Crypto exchange platforms including Binance, Coin Tiger, Coin base, and KuCoin. Investors who bought and held Cardano from its launch have an 88650 % increase in their Cardano investments.

Cardano Short Term Technical Analysis

A short term chart of Cardano

As per the Yahoo finance Charts, Cardano has been in a long-term bullish trend since 25th July. It reached an all-time peak of $3 in September. After this, the price has been at a retracement to date. The bearish retracement has been reducing in energy and volume. We can see this on the indicator at the bottom of the chart. 

The candles in the retracement have long wicks and small bodies, meaning the bearish rally is almost over. Since November, we have had very small candles. Also, the prices are consolidating at a range between $2.2770 and $1.8300. This is a sign that the prices are collecting contracts for a long bullish trend. 

Currently, the price is bouncing on a support level of $1.83004 and a psychological level of $2.0000. Because the price has tested this support level twice without breaking it, there are chances that the price will bounce off this level and continue with the long term bullish trend.

If the price breaks the support level of $1.83004, it will go to the support level of $1.4733, where there is an unclaimed demand zone before continuing to be bullish. However, the price has a high chance of going bullish from the support level of $1.83004 because the level is tested.

Cardano long Term Technical Analysis

A long term chart of Cardano

As per the Yahoo finance charts, the long term Cardano sentiment has been bullish since July 2018. Currently, the price is in a bearish retracement after hitting an all-time high of $3. This retracement might be ending as price, as we can see the price is finding support at the $2.000 psychological level. There is a chance that the price might not cross below this $2.000 point. If it does, then it will bounce off the trend line we have drawn to mirror price.

A long term chart of Cardano

This chart shows a strong resistance level at $1.8300 that has been broken and has turned into a support level. Since this level has held price more than five times, there is a probability that price will not cross it. So, our long term market sentiment is bullish.

Is Cardano a Good Investment?

For both traders and investors, Cardano is a great investment. Using the chart analysis above, it shows a high probability of a rise in prices. Both long term and short term traders can buy Cardano and have amazing gains.