Whether to buy Cardano (ADA) or not depends on your investment goals, risk appetite, and trend analysis capability. Below are some analyses to support decision-making:
1. Technical analysis (TA):
• Current price range: ADA is trading between 1.02–1.10 USD, which is an accumulation and consolidation zone. If it surpasses 1.14 USD, it could potentially rise further to 1.30–1.40 USD (an increase of about 30%).
• Increased trading volume: This indicates strong market interest. However, a sudden increase in volume after a price rise is often a sign of correction or slowdown.
• Important support and resistance levels:
• Support: 1.00 USD (if broken, it may drop to 0.90 USD).
• Resistance: 1.14 USD (if surpassed, the upward trend may continue).
2. Market sentiment:
• Whales are accumulating ADA, indicating interest from large investors. However, caution is needed as whales may sell to take profits if the market fluctuates significantly.
• General sentiment: If the cryptocurrency market continues its upward trend, ADA is likely to benefit. Conversely, if market sentiment turns negative, ADA may correct downward.
3. Risks to consider:
• High volatility: ADA's price is in a sensitive phase, and breaking out of the accumulation zone could lead to strong volatility in either direction.
• Correction after a price increase: With an increase of nearly 10% in the past 24 hours, a short-term correction is unavoidable.
• Dependent on the overall market: ADA typically moves in sync with the trends of Bitcoin and Ethereum. If these major coins correct, ADA will struggle to maintain its upward momentum.
4. Suggested investment strategy:
• Short-term: If you are looking to invest for quick gains, closely monitor support and resistance levels. Take profits at milestones like 1.14 USD or before reaching 1.30 USD, and cut losses if the price drops below 1.00 USD.
• Long-term: If you believe in the technological potential and development team of Cardano, accumulating at support levels (such as 0.90–1.00 USD) may be reasonable. However, risk assessment is needed when the overall market drops sharply.
Conclusion:
• Should you buy now? If you accept short-term risks and believe ADA will surpass 1.14 USD, this could be a good opportunity. However, if you are concerned about the possibility of a correction, it is advisable to wait for the price to return to lower support levels (0.90–1.00 USD) for a more attractive price.
• Note: Closely monitor the market situation and do not invest beyond your ability to bear losses.
If you need more information about the Cardano project or a deeper analysis, let me know!