Cardano (ADA) has recently faced major legal actions from the Securities and Exchange Commission (SEC) against leading cryptocurrency exchanges Binance and Kraken. Despite these regulatory lawsuits, analyst Crypto Capital Venture remains bullish on Cardano. The price of ADA has shown remarkable resilience and has not experienced significant capitulation. This article will analyze the reasons behind Cardano’s ability to withstand bearish news events and its potential for long-term growth.
The Bullish Positioning of Cardano
During the recent crypto bear market, Cardano reached its lowest point and has since been able to recover. According to Crypto Capital Venture, those who wanted to sell ADA have already done so, and those who wanted to capitulate have already done so. This indicates that the weak hands have been shaken out, leaving a stronger base of holders. The analyst sees this as a positive sign for the future growth of Cardano.
Although ADA has shown resilience, there are still potential short-term technical downsides to consider. The daily Relative Strength Index (RSI) indicator shows bearish divergence, similar to a previous occurrence earlier this year that led to a drop below the 20-day moving average. It is important to acknowledge these technical indicators, but Crypto Capital Venture remains optimistic about Cardano’s long-term prospects.
Crypto Capital Venture points to a bullish rising channel on the weekly chart as a reason for long-term optimism. If the price of ADA breaks on the upside, the analyst sees a potential price target of $0.75. He also draws parallels to price action in early 2020 before the COVID-19 pandemic disrupted markets. Speculating on the alternative scenario where COVID-19 did not occur, the analyst suggests that Cardano’s chart may have continued its upward trajectory.
The recent regulatory actions against Binance and Kraken are seen by the analyst as part of a larger setup to gain more control over the crypto space. Despite the challenges posed by these regulatory actions, Cardano is well-positioned to benefit from the next Bitcoin halving cycle scheduled for 2024. The analyst believes that these actions are paving the way for future inflows into the crypto market.
Cardano has shown remarkable resilience in the face of regulatory lawsuits and bearish news events. Despite short-term technical downsides, the analyst remains optimistic about Cardano’s long-term prospects. The bullish rising channel on the weekly chart and potential price target of $0.75 indicate the potential for further growth. Furthermore, Cardano’s positioning in the market and its ability to withstand regulatory challenges make it a promising investment for the future. As the crypto market continues to evolve, Cardano remains on track for success.