Cardano Price Prediction: Is ADA Ripe for a Breakout to $0.46?

]

Cardano price is in the green today as demand for the currency continues to rise. The ADA price is trading at $0.410, which is a few pips below yesterday’s high of $0.4290. Its market capitalisation has jumped to more than $12.4 billion, making it the 6th biggest digital currency in the world.

Cardano news: There’s no major news moving the Cardano price higher. This week, it was revealed that Grayscale Investments had decided to file for a Cardano trust. It will also form another trust for Monero, Cosmos, and EOS in addition to its other well-known trusts of Ethereum and Bitcoin. In theory, this will lead to more demand for Cardano and other currencies.

Another major Cardano news is that the company behind it plans to create its own stablecoin.

Cardano price prediction

Last week, I wrote that the ADA price was ripe for a bullish breakout. I pointed to the bullish pennant that started to form in January. This prediction was correct as the price broke-out to its all-time high of $0.4322.

Looking at the same chart, we see that it has found some resistance. This is expected since the price is at its ATH. Still, there is still a possibility that the price will have a bullish breakout as bulls start targeting the next vital resistance at $0.4500. However, this prediction will be invalidated if it moves back to $0.3500.

Don’t miss a beat! Follow us on Telegram and Twitter.

ADA price chart

XRP Pumpers Hope For More Action; Cardano’s Hoskinson Warns of Pump&Dumps

]

Source: Adobe/valeriya

It seems like XRP pumpers are hoping for additional upwards action, while Cardano (ADA) founder Charles Hoskinson, chimed in on the rising pump and dump issue across the crypto space, warning that those joining these scams will end up losing a lot of money.

The most recent update by the aptly named Telegram group ’t.me/pumpxrpofficial' formed five days prior, states that “after yesterday’s downside, XRP has created a beautiful rounding bottom and looks like it’s ready for more upside at the moment.”

Also, a statement was released on behalf of the Buy and Hold XRP Telegram group administration, it said, as a response to the events of February 1 - the day of the international ‘buy and hold’ event - and the “misinformation circulating” online. “Due to the overwhelming global spike in demand for XRP, many key exchanges had experienced system bottlenecks,” they said, adding: “We are unsure if the actions of the international community caused a direct increase in the price of XRP.”

As reported yesterday, XRP price rallied, doubling in just two days before taking a dive. The event was the result of coordinated pumping campaigns on platforms such as Reddit and Telegram, including the almost 100,000-strong t.me/pumpxrpofficial, which were working on repeating the dogecoin (DOGE) rally.

And now, the admins of the infamous Telegram group claim they “look towards building an international governance model with the goal of bringing value and talent to the [XRP Ledger]. We look forward to working in concert with existing infrastructure to see this through.”

All this comes after XRP had crashed due to a regulatory crackdown in the US, which was followed by a number of exchanges suspending or delisting the coin. The purge doesn’t seem to be over, apparently fuelled by the latest pump and dump activity, as PrimeXBT decided to remove XRP trading pairs and delist XRP on February 10. Also, Japanese exchange Coincheck briefly halted XRP sales “in consideration of the transaction status” with XRP-affiliated blockchain company Ripple.

Unexpectedly, saved by a massive pump in the last days of January, XRP came out as the best performer among the top 10 coins by market capitalization in January. At 12:56 UTC on Tuesday, it’s trading at USD 0.385. It dropped 35% in a day and increased almost 45% in a week.

XRP price chart:

Source: coingecko.com

Meanwhile, Cardano’s Hoskinson noted “a huge increase” in pump and dumps, as well as scams. Those in the space long enough will notice “a cyclic scam curve,” with groups on social media sites, including Reddit and Telegram, trying to pump a (usually smaller) coin’s price systematically, after they had bought early, hurting retail investors as they dump.

“We saw this done with GameStop, [and] dogecoin, and there may be some organized activity for XRP,” said the CEO, adding:

“In times of high spikes, lots of volatility, and other such things, it is a really, really, really, really good idea for you to exercise extreme caution and due diligence. Sustainable things generally don’t go up 500% in a day, ‘cause they often collapse 500% in a day, and you’re gonna be the one who’s left with a bag in your hand, and those who try to manipulate this - it’s a game for them, they make a lot of money.”

Meanwhile, ADA itself is also rallying today - it’s up by almost 30% in a day, trading at USD 0.445.

Hoskinson also reminded people of the dangers of giveaway scams. Ripple sued YouTube over this matter in April last year.

There are those within the Cryptoverse that also believe this recent XRP rally could have been an exit pump with whales looking to get out of XRP.

So many whales bag-holding $XRP, one exit pump was not enough, they needed two.

Nevertheless, a lot of money is about to flow into big-caps as soon as it’s over. pic.twitter.com/HY3hfEDAX2 — Galaxy (@galaxyBTC) February 1, 2021

And while all this was developing, many on Reddit have been discussing their lost and left bags, pump-&-dump groups and how to stop them, lessons learned, and warnings to others.

Learn more:

Dogecoin Dumped, Tron Dumped, Now XRP Doubles And Dumps

Researchers Found a Way to Catch Altcoin Pumpers and Dumpers Early

GameStop: How Redditors Played Funds For Billions (And What Might Come Next)

A Reddit Army Blurs The Line Between Crypto and Traditional Finance

Cardano Price Prediction: ADA is Extremely Bullish Above $0.4010

]

Cardano price has been in an upward momentum in the past 24 hours. ADA price has jumped by more than 4% in the past 24 hours bringing its market cap to more than $10.7 billion. This makes it the 6th biggest digital currency in the world.

Why Cardano price rose: There are two main reasons why the ADA price has jumped in the past few hours. First, it has gained a lot of interest among traders in chat platforms like Discord and Reddit. Together with Dogecoin, the two have become among the most popular assets by traders. The second reason is that, in general, other cryptocurrency prices have been on a strong uptrend in the past 24 hours. Bitcoin, Ethereum, Ripple, Dogecoin, and Stellar have been rallying.

The third reason is technical. Hear me out.

ADA price technical outlook

The daily chart below shows that Stellar has been on a steady uptrend in the past few months. The currency reached an all-time high of $0.4011 on January 16th this year. Since then, it has been in a consolidation mode, whose support is at $0.2786.

This has not been the usual consolidation. It has been, in fact, a bullish pennant pattern whose flag post started at about $0.1280. The triangle parts of the pennant are shown in red.

In technical analysis, a bullish pennant or flag is usually a sign of continuation. It happens when bulls start questioning the strength of the trend. Ultimately, it tends to break-out and continue with the trend. As I noted earlier, before its current pump, Dogecoin was also forming a pennant pattern.

Therefore, while ADA price has moved above the upper side of the pennant, the strength of the rally will be confirmed once it moves above the ATH at $0.4011.

Don’t miss a beat! Follow us on Telegram and Twitter.

Cardano price chart

follow us