Analyst Remains Bullish on Cardano Despite Regulatory Lawsuits
The analyst known as Crypto Capital Venture expressed his continued optimism for Cardano (ADA) in a recent YouTube video, despite the asset being named in regulatory lawsuits. He noted that the price of ADA has not significantly reacted to the Securities and Exchange Commission’s (SEC) actions against major exchanges like Binance and Kraken. This resilience, according to the analyst, demonstrates the bullish positioning of Cardano after it bottomed out during the previous bear market.
Although the analyst acknowledged the possibility of short-term technical downside due to bearish divergence on the daily Relative Strength Index (RSI) indicator, he remains optimistic in the long term. He highlighted a bullish rising channel on the weekly chart and suggested a price target of around $0.75 if it breaks on the upside.
The analyst also drew parallels between ADA’s current price action and that of early 2020 before the COVID-19 pandemic. He speculated that without this unforeseen event, Cardano’s chart at that time might have continued its upward trajectory.
Regarding recent regulatory actions, the analyst believes they are part of a larger setup to gain more control over the crypto space and prepare for future inflows. However, he believes Cardano is well-positioned to benefit from the upcoming Bitcoin halving cycle in 2024.
Hot Take: Analyst Remains Bullish on Cardano Amid Regulatory Challenges
In spite of being mentioned in regulatory lawsuits, Crypto Capital Venture maintains a positive outlook on Cardano (ADA). The lack of significant price reaction following legal actions against exchanges like Binance and Kraken indicates ADA’s resilience after enduring the crypto bear market. While acknowledging potential short-term downside based on bearish divergence on the daily RSI indicator, the analyst remains confident about the long-term prospects of Cardano. A bullish rising channel on the weekly chart suggests a price target of approximately $0.75 if an upside breakout occurs. Drawing parallels to ADA’s price action before the COVID-19 pandemic, the analyst speculates that Cardano’s chart could have continued upward without the unforeseen event. Despite perceiving recent regulatory actions as a setup for increased control, the analyst believes Cardano is well-positioned to benefit from the upcoming Bitcoin halving cycle in 2024.
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