ADA might see a huge jump soon because the price has finally broken past the 20 EMA resistance. After it made an all-time high above $3, we saw a very big correction. The dip was more than 60%, and the price almost hit $1. Currently, we are trading above $1.4, and this happened after Bitcoin pumped and altcoins also recovered a bit. Now, we are in the zone where there can be an accumulation for some time, and then we might move back up again.
What next?
The way ADA’s price was falling, it was expected that we might retest a pretty low level before seeing any type of upward movement. The range of $1-$1.2 seems to be a good support level for ADA, and even a few months back, we saw accumulation in this range. From here, I am so bullish that I think we can make a new ATH by the end of the first quarter of 2022 and even earlier.
As you can see in the chart that as the price of ADA fell the whole time, it was below the 20 EMA, and now it has finally made support above it. So, it looks like a good entry point to me. We can easily expect a few large candles from here if the market stays a little bullish. Bitcoin’s price action above $51.5k will be important so that the price increase is even more fast.
Why invest in ADA?
The proof of stake consensus of ADA is one of the main specialties of the token. It is energy efficient and has a lot going for it via smart contracts, NFTs, Dapps, and other technologies. Another good thing about ADA is that it has a peer-reviews research process which means before anything is implemented, it is thoroughly validated. After the update in 2020, it is also said that ADA has become 50-100 times more decentralized. This is another advantage ADA has over other tokens. It is also currently the 6th largest token even after the price is 50% below its ATH, which shows that it is still one of the most invested coins out there.
What are your thoughts as the current price action shows that ADA might see a huge jump soon? And do you think we will see a new ATH in the next 3 months? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Bitcoin faces resistance at $51.5k as price retraces back below $50k
