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Here Are 3 Scenarios for Cardano, As ADA Reaches Pivotal Price Levels

Fri, 03/31/2023 - 17:00
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Arman Shirinyan
Cardano reaches critical threshold that will determine its movement in foreseeable future, while Arbitrum and Shiba Inu await new developments
Here Are 3 Scenarios for Cardano, As ADA Reaches Pivotal Price Levels
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Cardano (ADA) has experienced a notable price increase since March 19, pushing the cryptocurrency toward several pivotal price thresholds. In this article, we will discuss three key levels ADA needs to reach and sustain, which could signal a more substantial bullish trend in the near future.

Firstly, ADA's reversal from the 200-day moving average is a crucial milestone to watch. The 200-day moving average serves as a long-term trend indicator, and a successful reversal from this level would signal a positive shift in momentum.

ADA chart
Source: TradingView

Second, a breakout above the 200-day exponential moving average (EMA) is another significant price level to observe. Currently, the 200-day EMA is hovering around the $0.41 mark, which also acts as a critical resistance level for ADA. If the cryptocurrency can successfully break through this barrier, it may pave the way for further upside movement.

Lastly, the third pivotal price threshold for ADA involves a successful breakout and sustained consolidation above the $0.41 resistance level. Consolidating above this level would indicate that buyers have taken control of the market, and ADA could potentially move toward even higher price targets in the future.

Shiba Inu forms triangle

Shiba Inu (SHIB) recently formed a symmetrical triangle pattern on its trading chart, a development that has captured the attention of market participants. This pattern has emerged as the volatility of the SHIB trading pair has decreased, reaching local lows.

A symmetrical triangle pattern typically consists of two converging trendlines, one ascending and the other descending, which meet at a point referred to as the apex. This formation often indicates a period of consolidation, where buying and selling pressures are roughly equal, and the market is awaiting a catalyst to spark the next significant price movement. The pattern's narrowing range causes the trading volume to decrease, compressing the price action within the triangle.

Shiba Inu (SHIB) Faces 3 Crucial Price Levels You Shouldn't Ignore

As the symmetrical triangle pattern progresses, the potential energy within the market builds up, eventually leading to a breakout or breakdown in price once the pattern reaches its apex.

A breakout above the descending trendline may signal the start of a bullish trend, while a breakdown below the ascending trendline could indicate further price depreciation. It is important to note that the direction of a breakout or breakdown is often unpredictable, so traders should exercise caution when making decisions based on this pattern.

Arbitrum whales are turning the tide

The Arbitrum (ARB) network has recently seen a reversal in its price trajectory, with a notable increase in active profit-taking among investors. This comes after the token's price spiked to $1.4, prompting a significant number of market participants to cash in on their gains.

Despite the recent price spike, the average token sale price has remained relatively stable for both early and late airdrop recipients. This suggests that a broad range of investors has been cashing in on their profits, regardless of when they entered the market. However, a key driver of the current reversal appears to be the actions of whale investors, who exert considerable selling pressure on the market.

The heightened selling pressure from ARB whales could lead to a more substantial price decline, particularly if other market participants follow suit and begin to sell off their holdings.

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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.