The crypto market looks pretty bloody today, with most of the important coins trading in the red. But this is not stopping the optimistic predictions regarding some altcoins from popping up.
It’s been just revealed that the crypto strategist Michaël van de Poppe is analyzing Cardano (ADA)’s price.
ADA is about to enter a consolidation phase
Van de Poppe says that ahead of the September 12th “Alonzo” upgrade which ushered in Cardano’s smart contract era, ADA had recorded impressive price gains before entering a consolidation phase.
“Cardano has been one of the strongest movers in the past month after the actual crash in May and the consolidation afterward. Since August, it has been rallying up towards a new all-time high. So should you be expecting another breakout to be happening after such a big run?”
He also made sure to point out the fact that there’s a “new impulse wave” for Cardano which is only likely to begin after a period where the price moves sideways.
“I think that if you’re seeing a valuation of $100 billion of Cardano at this stage, it doesn’t make sense to expect the breakout to be happening at the actual event, given that the actual event was already priced in,” he said.
He continued and stated the following:
“So what we’re seeing right now is that the price is going back towards equilibrium, towards the mean, having some consolidation before the new impulse wave can start.”
He also addressed the Cardano-Tether chart and said that an impulse wave is likely to begin after a consolidation phase.
“You should be looking at the range around $2 as a very important support level…from here to $2, I think you can just DCA [Dollar Cost Average] and then you’re getting ready to watch the new impulse wave. So after every big move, we’ll be having some sort of consolidation.”
At the moment of writing this article, ADA is trading in the red just like other alts and the coin is priced at $2.40.