In the face of recent regulatory lawsuits, the price of Cardano (ADA) has shown remarkable resilience, according to crypto analyst Crypto Capital Venture. Despite the Securities and Exchange Commission (SEC) targeting major exchanges such as Binance and Kraken, the ADA chart has not experienced a significant downturn. This surprising stability indicates a strong bullish position for Cardano, especially considering its recovery from the bear market in the crypto industry.
While the analyst remains optimistic about Cardano’s long-term prospects, he acknowledges the possibility of some short-term downside. He points out bearish divergence on the daily Relative Strength Index (RSI) indicator, which in the past has preceded a drop below the 20-day moving average. However, he believes that the overall positive trajectory of ADA outweighs these potential short-term fluctuations.
Drawing parallels to price action earlier in 2020 before the COVID-19 pandemic wreaked havoc on global markets, the analyst speculates that Cardano’s chart at that time may have continued its upward trend if not for the unforeseen black swan event. This observation suggests that, despite temporary setbacks, Cardano has the potential for strong growth in the future.
The analyst views the recent regulatory actions as part of a larger plan to establish more control over the crypto space and prepare for future inflows. He believes that Cardano is well-positioned to benefit from the upcoming Bitcoin halving cycle in 2024. While the recent cases involving Kraken and Binance may have caused some concern, the analyst suggests that they are already in the past and shouldn’t hinder Cardano’s progress.
Despite potential challenges, the analyst maintains an optimistic outlook for Cardano. He points to a bullish rising channel on the weekly chart, with a potential price target of around $0.75 if the channel is broken on the upside. This positive projection indicates that Cardano has the potential for significant price appreciation in the long run.
Cardano (ADA) has proven its resilience in the face of regulatory lawsuits targeting other major exchanges. The strong position of ADA suggests that the worst may be behind it, paving the way for future growth. While some short-term downside is possible, the overall trajectory of Cardano remains positive. Investors and enthusiasts can look forward to the potential benefits of the upcoming Bitcoin halving cycle and the long-term prospects of Cardano as a promising cryptocurrency.
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