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Cardano (ADA) Needs 3 More Days for This to Happen

Thu, 07/13/2023 - 17:00
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Arman Shirinyan
Cardano is on its way to breakthrough but needs more time
Cardano (ADA) Needs 3 More Days for This to Happen
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Cardano (ADA) has found itself within the confines of a symmetrical triangle, a crucial pattern that typically precedes a significant price movement. However, the direction of this breakout remains unknown and could swing either way. Based on the pattern's parameters, it appears that the breakout is set to occur in approximately three days.

As the price oscillates between the converging trendlines of the triangle, traders and investors are waiting with bated breath. The looming volatility could potentially offer profitable trading opportunities or signal a strategic shift for long-term holders.

ADA chart
Source: TradingView

While the impending breakout could go either way, it is important to note that Cardano previously found considerable resistance around the $0.3 level. Hence, an upward breakout might test this resistance once again. However, the lack of selling pressure suggests the potential for Cardano to breach this barrier and establish new support levels.

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Simultaneously, a downward breakout cannot be ruled out. ADA may continue to face challenges and see some downside before a substantial recovery, primarily due to the current low trading volume. Low volume often indicates a lack of investor confidence or interest, potentially leading to weak breakouts or breakdowns.

Whales wake up on Shiba Inu

Shiba Inu's landscape was altered recently when a crypto whale made a significant move by transferring four trillion SHIB (valued at approximately at $29.8 million) across eight newly minted addresses. The intriguing factor is that this whale is the most prominent SHIB holder, possessing an astounding 101.47 trillion SHIB. This sums up to roughly $756 million, approximately 10.15% of the token's total supply.

Shiba Inu Eyes Explosive Surge by $500 Million in Market Cap: What's Next for SHIB?

This whale hadnl not made any large transactions for 610 days until this moment, indicating a strategic shift in the holder's portfolio management. The activity adds a layer of intrigue considering the whale's history; they initially purchased 103.33 trillion SHIB with a mere 38 ETH ($14K), and later sold 603 billion SHIB for 2,411 ETH ($9.6 million). Additionally, they transferred 1.25 trillion SHIB ($8.77 million) to Coinbase in 2021.

While the precise motivation behind these transfers remains obscure, the market impact of such whale activity is undeniable. Whales have a substantial influence on the price dynamics of cryptocurrencies due to the sheer volume of tokens they control. Their transactions can stimulate volume, liquidity and sometimes volatility on the market.

Shiba Inu is currently grappling with a resistance level around $0.0000075. Despite multiple attempts, it has been unable to break through, leaving the community waiting for a catalyst that could alter the token's trajectory. While not guaranteed, the recent whale movements might be the momentum shift required. They could boost trading volumes and liquidity, potentially aiding SHIB in its struggle with the resistance level.

PEPE holds on for its life

In the volatile landscape of meme coins, PEPE has managed to cling onto its value against odds, primarily due to a significant price threshold – the 50-day Exponential Moving Average (EMA). Acting as a robust support level, the 50 EMA is currently functioning as a magnet, attracting a substantial concentration of buy orders.

The unique characteristic of the EMA is its sensitivity to recent price changes, making it an essential tool for traders seeking to capture short-term trends. At this juncture, the 50 EMA is preventing PEPE's price from slipping further by providing a stable platform from which buyers can regroup and push back against selling pressure.

Pepe Drops 20%, Investors Dump Massive Volumes

Another factor in play is investor psychology. Many investors, particularly those who bought at higher levels, are reluctant to sell at break-even. They remain optimistic, holding onto their PEPE tokens in anticipation of future profits, further buoying the token at its current levels.

However, a word of caution is warranted here. While the 50 EMA is holding firm for now, a breach below this critical support level could trigger a so-called "death spiral." In such a scenario, the selling pressure may intensify as traders scramble to cut their losses, and the 50 EMA could transition from a support level to a resistance level. This would make it much harder for PEPE's price to recover in the short term.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.