Cardano is currently going through a downtrend, and continues to show bearish tendencies as its price trends below $0.5. However, while many saw the altcoin as not having a lot of prospects, cryptocurrency analyst FieryTrading believes that the digital asset gives investors an opportunity to enter at a cheap price.
Cardano can exit the parallel channel
In an analysis on TradingView, cryptocurrency analyst FieryTrading points to Cardano's potential to break out and go on a massive bull run. Analysis adapted from A Previous analysis The analyst had indicated that the Cardano price entered a parallel channel.
This parallel channel appeared as the high of the last cycle entered the high of the current cycle with a line drawn from the low of the last cycle when the close led to a collapse in cryptocurrency prices. Although cryptocurrency analysts first pointed to this parallel channel in 2023, they believe it is still valid, especially as the price continues to decline.
At the time, the cryptocurrency analyst predicted that the price of ADA, if it broke out of this parallel channel, could rise to $35. This bullish outlook continues with the latest analysis, but with price adjustments.
On Wednesday analysisFieryTrading indicates that there is still potential for the altcoin price to reach the top of the channel. In this case, the price will complete the entire move towards $30. However, the cryptocurrency analyst's chart carries a target of $25, which represents a 5,600% upside from its current level.
Source: TradingView.com
ADA Bears keep control
Despite the bullish outlook maintained by the cryptocurrency analyst, Cardano has succumbed to the bears. The price fell to a low of $0.44 in the last day, indicating a decline of 1.38%. On a broader time frame, the price of ADA looks worse, with a decline of approximately 28% in one month.
However, despite this trend, the analyst still believes that investing in Cardano at the moment is a risk worth taking. FieryTrading refers to this as an “entry of a lifetime” that can guarantee good returns. Furthermore, the analyst gives it an R/R (risk/reward) ratio of 116, which is a good number.
Currently, the price of ADA is still struggling to hold up in the market. This was helped by low market sentiment, which led to a significant 22% drop in daily trading volume, according to Data From Coin Market Cap.
ADA price at $0.43 | Source: Source: ADAUSDT on Tradingview.com
Featured image from Binance Academy, chart from Tradingview.com
Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC's views on buying, selling or holding any investments and investing naturally carries risks. We advise you to conduct your own research before making any investment decisions. Use the information provided on this website entirely at your own risk.