ADAUSD Fights to Consolidate

ADA is having mixed emotions right now. It had a fall to the 200MA, which held it for a couple hours, then passed through. Now, with the help of the support around 2.5 and a bullish hammer, it is retesting the 200MA. If it can stay above 2.45 there is a large chance it can consolidate further. If it falls in the red range, the price is likely bound for the next support of 2.2. However, right now it looks happy sitting at around the 2.5 support level and testing the 200MA. The test of the 200MA, in general, is bullish. It tells us sentiment is changing and buyers are entering the market again. If it can consolidate in the consolidation zone for a few days, it will likely be ready to push upwards. However, the gap in volume must be filled prior or else any attempt to push will be rejected and a support level will be tested.

Now lets talk about why ADA has so much strength. Cardano is about to release smart contract September 12 with the Alonzo release. This addition makes it a viable competitor to ETH as an open source platform. Right now, it is just a glorified ledger. As a person who plans to be a Cadano Developer once Alonzo is released, it makes me wonder how far ADA can go. I have heard people say it cannot go to 100 dollars because it will need around a 3T market cap. But considering in the past 2 weeks ADA has added 31B to its market cap, it's definitely not out of the realm of possibility. Also, considering Grayscale Investments has picked it up, I think it has a LOT more room to grow.

Tell me what you think?

This is not financial advice. DYODD.