Cardano (ADA) has been struggling to maintain its momentum in recent weeks, with the hype surrounding the launch of the Shelley mainnet upgrade beginning to fade.
This has had dire implications for ADA’s price, which has been struggling to maintain the intense uptrend that it has previously been caught within.
Analysts are noting, however, that the cryptocurrency is finally nearing what is being described as the “sweet spot” that may ultimately allow it to reverse its multi-week descent and begin forming a new leg higher.
One analyst is specifically looking towards a 30% bounce in the near-term, which will only come about if it can maintain above a crucial level.
That being said, because the flood of announcements that were previously driving it higher have since dissipated, there’s a possibility that investors will start taking profits and cycling them into projects with greater near-term momentum.
Cardano’s Strong Multi-Month Uptrend Stalls as Analysts Watch for Dip to Crucial Support
At the time of writing, Cardano is trading up just over 3% at its current price of $0.11. This marks a notable upswing from recent lows of $0.10 that were set at the bottom of yesterday’s selloff.
It is important to note that this selloff proved to be incredibly short-lived and came about as a result of Bitcoin plunging from $11,600 to lows of $11,150.
This movement sent shockwaves throughout the market, and while BTC has recouped all of its losses, ADA is still trading slightly below its daily highs of $0.112 that were set just before yesterday morning’s dip.
One analyst is now noting that he is watching for a dip towards $0.09 before he jumps back into the cryptocurrency, as he is calling this a “sweet spot” for long-biased swing trades.
“7 long weeks of waiting for ADA. Looking for the sweet spot.”
Image Courtesy of Cold Blooded Shiller. Chart via TradingView.
Trader: Holding This Key Price Level Could Allow ADA to See a 30% Surge
Another trader explained in a recent tweet that the cryptocurrency is currently holding above a crucial mid-term support level that it has formed against its BTC trading pair.
He notes that a continued hold above this level could be enough to propel Cardano by as much as 30% against BTC in the near-term.
“Skipped the first point of interest, but getting at the crucial level already. Holding in green and we might see a 30% bounce,” he explained.
Image Courtesy of Crypto Michael. Chart via TradingView.
Where Cardano trends next may depend somewhat on whether or not Bitcoin and Ethereum’s near-term price action continues providing an ideal backdrop for altcoins to rally against.
Featured image from Unsplash. Charts from TradingView.