Cardano Price As Pump Setup Triggers, Is ADA Going To $1 In December?
The crypto market remains bullish even as Bitcoin (BTC) takes a breather from the rally below $45,000. Intriguingly, this pause is bringing us closer to the altcoin season; as crypto majors like Ethereum (ETH), Solana (SOL), and Cardano (ADA) break out, some in double digits.
After a period of consolidation around $0.4, Cardano price breakneck climb has seen it surge by almost 20% to $0.51 on Friday. Now that three key barriers are out of the way including $0.4, $0.45, and $0.5, FOMO may start to kick in as investors find ADA an attractive investment.
Cardano Price Prediction: Can ADA Hit $1 In December
The persistent growth of the money flow index (MFI) suggests that Cardano is squarely in the bulls’ hands. As for traders scalping opportunities at the moment are in plenty but ADA price must confirm higher support above $0.5 to keep investor sentiment positive for recovery to $1.
The MFI is an indicator that monitors the inflow and outflow of money into Cardano. If the inflow volume significantly dwarfs the outflow volume, prices tend to rise. This could explain the breakout from $0.4 to $0.522 and if the trend remains unchanged, ADA may move to close the gap to $1 before the end of December.
Two key levels could determine the next direction ADA takes. These are the support at $0.5 and the immediate resistance at $0.55.
Defeating the sell-side potential at $0.55 will affirm the bullish grip and encourage traders to continue betting on more long positions as opposed to selling at the earliest sign of profit.
Key bullish crossovers or golden crosses back the uptrend in Cardano. The first golden cross occurred in late October when the 21-day Exponential Moving Average (EMA) (blue) flipped above the 50-day EMA (red) while the second and third played out in November with the 21-day EMA crossing above the 200-day EMA (purple) and lastly when 50-day EMA flipped above the 200-day EMA.
From the perspective of the Relative Strength Index (RSI) in the four-hour time frame, traders should be cautious to avoid falling into a bull trap. An overbought RSI at 87 indicates that the rally needs to take a breather before resuming.
A change of strategy or adopting the right strategy will distinguish profitable traders from those who get wrecked during bull markets.
Understanding that corrections are unavoidable and necessary for continued price movement is the first step. This means that knowing when to buy and when to sell is critical to capitalizing on trending markets.
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