Crypto analyst LuckSide contends that Cardano (ADA) is at a crucial crossroads, confronting a pivotal juncture that will shape its future path.
LuckSide suggests that ADA is on the brink of a defining shift, either upward or downward. This assessment is grounded in a notable contrast between bearish and bullish scenarios.
In LuckSide’s analysis, Cardano’s trajectory is poised for a decisive development. The divergence between bullish and bearish scenarios is a key factor influencing LuckSide’s analysis.
Analysing Bullish and Bearish Scenarios for Cardano
LuckSide used TradingView’s block tools to highlight a significant liquidity gap in ADA’s price chart. It showed a challenging resistance zone ranging from $0.60 to $0.67, which Cardano has recently grappled with.
Simultaneously, LuckSide pointed out a notable open gap that Cardano swiftly filled and a discernible support level. Additionally, the analyst identified various converging factors. This included a bullish pennant and the ascending 20-day moving average, which ADA tested during a recent downtrend.
These factors led LuckSide to anticipate one of two potential dynamic movements for ADA. The first scenario envisions an upward surge. This could propel ADA into the $0.70 range—a threshold not seen in approximately 17 months.
Conversely, the second projection anticipates a potential crash for ADA to $0.40. Importantly, LuckSide emphasised that his analysis is not financial advice, and chart predictions have no guarantees.
Nevertheless, the analyst leaned towards a more optimistic outlook for ADA, citing strong indicators showcasing promising trends.
Furthermore, LuckSide argued that traders initiating short positions are the primary contributors to downward pressure. He suggested that these market participants aim to recover losses incurred during ADA’s notable price upswing in the last 30 days.
Anticipating Explosive Moves in 2024
LuckSide further drew optimistic conclusions by considering the imminent Bitcoin halving. The upcoming Bitcoin halving is scheduled for April 2024.
The analyst pointed out that this halving is unusually close to the start of the year, prompting speculation about the potential for a significant market surge at the outset of 2024. He suggested the market could experience substantial momentum leading up to and extending beyond the halving.
Despite these positive speculations, the analyst offered a word of caution. He emphasised the absence of guarantees in financial markets.