Cryptocurrency strategist Michaël van de Poppe stated that he is closely following Cardano (ADA), which has recently added a “smart contracts” feature. Cardano lost nearly 10% in value after the seven-day peak after the smart contracts feature was added.
According to Van de Poppe’s comment, ADA had an impressive price increase before the smart contract period that Cardano launched with the “Alonzo” update on September 12.
“Cardano was one of the altcoins that took the strongest stance this past August after the massive crash in May and the consolidation that followed. ADA continues to maintain its upward trend since August. So, should we expect a new breakout from ADA, which continues to rise?”
According to the analyst, a “new wave of warning” for Cardano could only occur after a period when the price started to move sideways.
“I think if you’re seeing the $100 billion valuation of Cardano right now, you can actually assume that the pricing has already been done. Therefore, it does not make much sense to wait for a new breakout to occur.”
Therefore, these movements that take place in Cardano are only a balancing, a return to the average movement. These movements are useful to have consolidation before a new warning wave. Commenting on the Cardano/Tether (ADA/USDT) chart, Van de Poppe states that the “very important support level” is around $2 and a warning wave is likely to start after the consolidation phase.
“Right now you should focus on the ranges around $2 as an important support level. You can only Average Dollar Cost from these levels to the $2 level. After these movements, you will be ready to watch a new warning wave. So after every big move, we will experience some kind of consolidation.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.