Analyst Crypto Capital Venture says he remains bullish on Cardano, despite recent regulatory lawsuits that named the asset.
In a video posted to YouTube on Nov. 23, the analyst explained that the price of Cardano (ADA) has barely reacted to major legal actions from the Securities and Exchange Commission (SEC) against leading cryptocurrency exchanges Binance and Kraken.
This Cardano chart is absolutely mind-boggling to me because the last 48 hours of crypto news headlines should have this chart absolutely capitulating, and that is not happening.
Crypto Capital Venture
The analyst believes the resilience of ADA in the face of bearish news events shows just how bullish its positioning is after bottoming out during the recent crypto bear market. According to him, “people who are going to sell, they have sold. [The] people who are going to capitulate, capitulated.”
The analyst does acknowledge ADA could still see some technical downside in the short term. He notes bearish divergence on the daily Relative Strength Index (RSI) indicator, similar to a move earlier this year that preceded a drop below the 20-day moving average.
However, he remains optimistic in the long-term. The analyst points to a bullish rising channel on the weekly chart with a price target around $0.75 (if broken on the upside).
He also draws parallels to price action in early 2020 before the COVID-19 pandemic disrupted markets. The analyst speculates that without the black swan event of COVID, ADA’s chart at that time may have continued upwards rather than dropping.
The analyst believes the recent regulatory actions are “all a setup” to allow more control and prepare for future inflows to the crypto space. Yet, he thinks Cardano is positioned well to benefit from the next Bitcoin halving cycle, set for 2024.
Everything that’s going on, the Kraken case, the Binance stuff that I tweeted about being, you know, that’s actually behind us now. Everything that’s going on, one thing is true. This is all the setup. It’s all a setup. I really think that. […] We are just so on track.
Crypto Capital Venture
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