Cardano Price Prediction: ADA Falls 7% as Crypto Markets Retrace – Time to Buy the Dip?
Cardano (ADA) is experiencing a bounce at key support in the $0.28 area in the form of its 21-Day Moving Average and an uptrend from the June lows.
The bounce, which comes as crypto markets breathe a sign of relief in wake of not-as-hot-as-feared US jobs numbers, keeps alive hopes that ADA has formed a bullish ascending triangle structure.
These technical patterns tend to form ahead of a bullish breakout.
So, with ADA still nearly 7% down from earlier weekly highs in the psychologically important $0.30 area as the broader crypto market retraces, is it time to buy the dip?
With Cardano still in the process of forming a bullish short-term technical structure, bull are optimistic and short-term price predictions are thus bullish.
If ADA can break above resistance in the $0.30 area, this could open the door to a swift recovery back to its 200DMA and resistance in the $0.35 area.
If ADA can pull of this rally, it would have recovered practically all of the ground it lost in wake of the US Securities and Exchange Commission’s labeling of it as a security this time last month.
And it’s not just technicals that suggest an ADA recovery is on the cards.
The blockchain’s Decentralized Finance (DeFi) ecosystem continues to go from strength to strength, despite SEC FUD (which stands for Fear, Uncertainty and Doubt).
As per DeFi Llama, the USD-denominated total value locked (TVL) of crypto locked in Cardano smart contracts (via Cardano Decentralized Apps) is back above $200 million and almost back to yearly highs.
ADA-denominated TVL, meanwhile, continues to hit new all-time highs.
All said, while US regulatory uncertainty continues to hang over ADA, now could be a good time to buy the dip.
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