With Bitcoin taking a short term tumble, it is a very difficult task to come up with a realistic price prediction for the end of the month because it could go entirely either way! If Bitcoin continues to fall as the month progresses and breaks beneath $10,000, we can certainly expect this to trickle over into the altcoin markets. However, if Bitcoin can stabilize and altcoins start to recover against Bitcoin - we have optimal conditions for an altcoin resurgence. A tricky situation indeed!
Cardano has its own fundamentals to add into the mix with their upcoming launch of Cardano 1.6. This latest update will see some leaps in user interface improvements for their Daedalus Wallets. Charles Hoskinson has suggested that this update will go live over the next few days.
Cardano has been struggling after losing around 14% over the past 30 days. The cryptocurrency is currently trading at a price of around $0.0517 as it has recently established a short term trading range. Cardano is ranked in the 12th position amongst the top cryptocurrency projects by market cap value as it currently holds a $1.34 billion market cap.
ADA/USD - MEDIUM TERM - DAILY CHART
What Has Been Going On?
We can see that Cardano has been suffering heavily during June and July - in fact, the cryptocurrency has dropped by a precipitous 43% over the past 90 trading days. However, we can see that the market has established a short term range over the past week between $0.055 and $0.047. A break of this range towards either direction should dictate where Cardano will end up at as August closes.
The bullish case; If the bulls can hold the support at $0.50 and start to climb, the first level of resistance to overcome is located at the downward sloping trend line. Above this, higher resistance can be found at $0.055, $0.057, $0.059 and $0.06.
If the bulls can then continue to reach $0.065 by the end of August I would be quite content. However, if the can break further higher - more resistance can be found at $0.06799, $0.070, $0.075 and $0.080.
The bearish case; If Bitcoin continues to drop and adds downward pressure to the market, we can expect immediate support to be located at $0.051 and $0.050 (.786 Fib Retracement @ $0.04986). Beneath this, further support is then to be expected at the lower boundary of the range at $0.04740.
If the sellers continue to break beneath the range, support toward the downside is then located at $0.0444, $0.04352 and $0.040.
With Bitcoin making huge whipsaws it is difficult to come up with a more concrete prediction. However, I feel that if the bulls can stay in control, a realistic price prediction is the resistance around $0.065 as this will be slightly difficult to overcome. Alternatively, if the seller continues to drive the market lower we could see Cardano testing $0.04352.