Market Analysis of Cardano for December 31st 2020

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The short-term demand for most altcoins has been characterised by wave-like movements. While Cardano has been going ahead on the growth front, its price changes have still been sideways. The price of the cryptocurrency was consolidated between a tight range and, at the time of publication, ADA was trading at $0.1841 with a market cap of $5.636 billion.

Cardano one-hour chart

Source: ADAUSD on TradingView

Cardano’s price soared to a new high and, after a little reversal, found a foundation to hang on. The price of the cryptocurrency has been travelling along the $0.1874 and $0.1761 range for a while now. However, there has been a sell-off simmering as traders try to make a return at this stage before the price fall.

Raisoning

There was a good reversal on the market after the price peaked. This adjustment can be suggested by the Relative Strength Index. The digital commodity has entered an equilibrium region and has been travelling in this range for some time now. With RSI dropping, selling off may be the next development in the ADA market.

The Chaikin Money Flow noted a turnaround after a short amount of time saw cash flow out of the crypto-market. At the time of publication, the CMF was above zero, a symbol of money pouring back into it.

Place of position

Entrance: $0.1830
Stop Loss: $0.1862
Pick-up: $0.1758
Risk-to-Rewards: 2.24.

 

Concluding

As the ADA market formed a steady price-level zone, traders looked at the potential to sell the digital asset. The above range could convert its investors into substantial gains, but traders will want to stay alert to any unexpected price fluctuations.

Disclaimer: The conclusions of the accompanying report are the personal views of the author and should not be taken as financial advice.

 

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