After the Covid-19 collapse in 2020, a big rally in cryptocurrencies was ignited. In the past 1.5 years, the rise in cryptocurrencies has made early investors rich, while some projects have made great progress.
One of the projects that pleased its early investors was Cardano. The 6th largest cryptocurrency, ADA, which retreated to $0.018 in March 2020, reached the level of $3.10, displaying an increase of 17528%.
The project, which continued to grow with many updates it received in 2021, reminded once again that it is a competitor to Ethereum with the latest Alonzo update, which improves its smart contract capability.
While Cardano continued to grow, the price pullback did not please the investors who later invested in the project.
After the Alonzo update, ADA, which lost 50% from its peak with the selling of the expectation, continues to trade at $1.60 at the moment.
Although there has been a 50% pullback in price, we see that the number of active addresses on Cardano has increased by more than 25% in November 2021. The number of active addresses, which was 161,000 at the beginning of November, has now increased to 191,500. This data shows that the pullback in ADA is seen as an opportunity by some investors.
Technically speaking, we observe that the $1.40 and $1.50 levels are support. Depending on the movements in Bitcoin, we may continue to accumulate in the following ranges for a while. Our main support level remains at $1.
Looking at the fibonacci data of the last uptrend, we see that the price took support at 0.786 and may have finished its correction. As long as the range of $1.40-1.50 is maintained, we can see the $2.60-2.75 range being tested again.
*Not Investment Advice.