Crypto Capital Venture, a prominent analyst, maintains a bullish outlook on Cardano (ADA) despite the recent legal actions taken against it. Despite facing major lawsuits from the Securities and Exchange Commission (SEC) against leading cryptocurrency exchanges Binance and Kraken, the price of Cardano has shown remarkable resilience. The analyst finds it mind-boggling that the last 48 hours of crypto news should have caused the chart to capitulate, yet it remains strong. This resilience is a testament to ADA’s position in the market, having weathered the storm of the previous crypto bear market.
While the analyst acknowledges that there may be some technical downside in the short term, he remains optimistic about Cardano’s long-term prospects. He points out bearish divergence on the daily Relative Strength Index (RSI) indicator, similar to a previous occurrence that resulted in a drop below the 20-day moving average. However, he believes that the overall trend is bullish. On the weekly chart, there is a bullish rising channel with a price target of around $0.75 if it breaks on the upside. Drawing parallels to early 2020 before the COVID-19 pandemic disrupted markets, the analyst speculates that ADA’s chart may have continued to rise if it weren’t for the unforeseen black swan event.
The recent regulatory actions against Cardano and other cryptocurrencies are seen by the analyst as part of a larger setup. He believes that these actions are designed to establish more control over the industry and prepare for future inflows into the crypto space. While the Kraken case and the Binance situation initially caused concern, the analyst asserts that they are now behind us. He sees these actions as paving the way for a more regulated and mature crypto market.
Despite the challenges, Cardano is well-positioned to benefit from the upcoming Bitcoin halving cycle, which is set to occur in 2024. The analyst sees this as an opportunity for Cardano to thrive and gain more traction in the market. He reiterates that everything going on is part of the setup for the future, and Cardano is on the right track.
Cardano has demonstrated its resilience in the face of regulatory challenges. The lack of significant price movement following the legal actions against other major exchanges is a positive sign for the future of Cardano. While short-term challenges may exist, the bullish outlook on the coin remains intact. As the crypto market continues to evolve and mature, Cardano stands to benefit from its position and the upcoming Bitcoin halving cycle. The setup may be complex, but Cardano remains on track for future growth.
