Cardano Price Prediction: Today’s ADA Price, 5th Nov 2022

Cardano Price Prediction

With stronger demand coming from the support it had reaffirmed at $0.3350, the Cardano price maintained an upward trend throughout the third and fourth weeks of October. The upswing was supported by a rising trend line that made buyers mostly in charge despite frequent retracements as investors locked in profits at various price levels.

What goes up must, however, come down. Cardano’s upward movement stalled when the price bumped into $0.4420, despite the bullish candle’s wick hitting $0.4400. The rising trend line was then breached by a bearish candle, ending ADA’s winning streak.

Cardano fell below all of the applied moving averages as overhead pressure surged into the market, including the 200-day EMA (Exponential Moving Average (EMA)) (in purple), the 50-day EMA (in red), and the 100-day EMA (in blue).

As evidence of the pessimistic forecast for the price of Cardano, the MACD (Moving Average Convergence Divergence) indicator, which had on Sunday confirmed a sell signal, dipped below the mean line.

The same MACD indicator may, however, flash a buy signal in the ensuing sessions, compelling traders to open short-term long trades to $0.4100. However, traders must wait for ADA to make a clean move over the 50-day EMA before triggering their buy orders.

Fundamentals like the rise in the number of daily active addresses on the network support the bullish prognosis for Cardano’s price. Almost reaching a new monthly record, these addresses exceeded 84,478 on November 2, according to Santiment’s on-chain data.

Increases in this statistic suggest that ADA investors are very speculative. In other words, more investors are placing their bets on Cardano’s capacity to maintain the upswing. Therefore, to advance not just to $0.4100 but also to $1.0000, a steady growth in the number of addresses transacting on the protocol daily is required.

If bullish impetus wanes, the resistance indicated by the 50 EMA could thwart the predicted climb to $0.4100. This indicates that short trades below the same moving average may become profitable right away.

To be prudent, traders might hold off on closing out their short positions until there is a clear breach below the 100-day EMA. Recent support for ADA is at $0.3810, which could be used as a take-profit position, but traders who are obstinately pessimistic can wait until the token reaches $0.3650.

According to the MVRV (Market Value Realized Value) on-chain model by Santiment, the majority of ADA holders are making money. Due to the metric’s position at 3.88, which is over 1, investors may believe Cardano is overvalued. In this situation, they are probably going to sell, which will put further pressure on ADA to look again at lower pricing points.

By comparing the price at which the tokens that ADA holders most recently traded with their current market value, the MVRV keeps track of ADA holders’ profit or loss ratio. On the other side, when the MVRV ratio falls below 1, ADA becomes devalued.

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