Cardano is one of those altcoins that managed to walk around. In fact, the network is gearing up to implement smart contracts by October 2021 with Alonzo. However, is the price of the altcoin really keeping up with its growing popularity? Judging by the recent Bitcoin-led market rally, the answer seems to be in the negative. So, can he catch up? Or is he going to take a different route?
Cardano follows bitcoins?
Despite the fact that BTC is up 35.4% after rising this week during the press release, ADA is only up 22.4%. Bitcoin has managed to break through the doors of its Fibonacci bull market, levels below which BTC has consolidated for over a month. When the BTC price reached $ 40,000, it broke through the door resistance and traded above it, albeit for a short time.
However, according to Dan Gambardello, this sudden jump will require a similar correction that could force Bitcoin to form higher lows. In fact, these higher lows can form in the $ 31,000 to $ 32,000 range.
Such a correction will put Bitcoin on a sustainable growth path. In addition, the 20-week moving average will serve as the gap for the king’s coin. In order to register strong bullish gains, BTC will have to turn it into support.
Cardano, on the other hand, seemed to be heading in a very different direction.
Important Cardano Levels To Look Out For
It has been observed that the ADA price movement increases in leaps and bounds after each hard fork. All the updates coming to the network brought with them a bullish move. With the Alonzo hard fork approaching, something like this could be possible. Cardano’s price could enter the bull market pattern that his charts previously displayed and the ADA could move north.
This will place the next critical resistance at the $ 1.3-1.4 level. Now, if these levels seem very close to you, then you should know why the ADA will have a hard time getting past them.
Since Cardano was unable to keep up with Bitcoin, he also failed to break through the door of his own bull market. The ADA was already trading within the macro descending triangle, and although it eventually broke out of it, it was testing the upper trendline again for support at press time.
If he falls back into the structure, there is no way to tell if he can get out or not. While small retracements would be considered the norm, the on-chain metrics painted a slightly different picture.
In fact, despite the aforementioned 22.4% rise, real cryptocurrency volumes continued to fall. Moreover, the same was the case at the levels that were last observed in November 2020.
Given that investor sentiment is already consistently negative, this pullback makes sense. If this continues in the long term, critical support levels will be set in the $ 1.10-1.16 range.