Cardano price could be a good trade for short-term bulls, but the larger picture shows concerning signals. Key levels have been defined.
Cardano price is a risky play
Cardano price blew past retail bears this week as a 25% rally took place. Despite the impressive surge, the larger picture for the Cardano price is unhinged. In the short-term, Cardano price has the potential to rally higher, but the triangle thesis, which projects ADA into $0.25 in 2023, is still a factor that investors must keep in mind going into Q4.
Cardano price currently auctions at $0.38 as a profit-taking consolidation took place near the newly established October highs. The 8-day exponential and 21-day simple moving averages collide, which could prompt a bullish cross. If the cross occurs, an additional hike toward $0.48 could be a plausible outcome, resulting in a 20% increase in market value.
The recent uptrend move shows one concerning signal. There is volume near the top of the newly established monthly highs. This could be the sole evidence of a smart money trap underway. If the technicals are correct, the uptrend move might be wave ii, and ADA could be headed for a wave sharp wave three declines.
Still, the triangle’s invalidation point is 50% above the current market value at $0.52. This thesis proposes that traders engage in any uptrend trades solely as a short-term play. So long as $0.52 remains untagged, Cardano stands a chance to fall in penny-from-Eiffel style fashion.
If the bulls can tag the invalidation point at $0.52, an ideal bullish environment for long-term investors would likely be underway. Cardano price could ralph as high as $1.20, resulting in a 200% increase from the current market value.