Cardano (ADA) has reached a new peak, but it is probably not the best time to buy this cryptocurrency right now.

 

In recent days, Cardano has been one of the best performing cryptocurrencies on the market, with its price reaching a new high above $ 2. The current price is about $ 2.13, and you should always use a stop-loss order while trading Cardano (ADA) because the risk is always high.

The current price increase has a less fundamental meaning, according to fundamental research.

Since early May, Cardano has been exploding, and the cryptocurrency is still in a bull market. ADA volume is still strong on a daily basis, but the recent price increase has a less fundamental nuance.

Are you looking for breaking news, business research, and advice? Sign up for the Invezz newsletter today.

"Cardano is overvalued; the market is always forward-looking, and the current price is based on expected future value, but more than that, I believe if we go, to be honest here, the current price is based on the anticipated future value, but more than that, I believe if we go, to be honest here, the current price is based on the anticipated future value, but more than that, I believe if we Cardano's current price is rising. a little. on the hype vs. real demand for the token based on the utility and desires of developers and users, and so forth. Lark Davis, a cryptocurrency investor and influencer, said as much.

 

The cryptocurrency market is still under pressure, and most cryptocurrencies' values have dropped to their lowest levels in months. Bitcoin is currently down more than 20% from its record of about $ 64,895, suggesting that it has entered a bear market.

This week, the cryptocurrency market is losing value, and Cardano's price could easily fall below $ 1.8, suggesting that now is not the right time to invest in this cryptocurrency. If large investors sell a large amount of Cardano at once, it could cause an extreme correction, as even a small price shift could trigger sell-offs by highly leveraged traders.

$ 2 is a high degree of funding, according to technical analysis.

This cryptocurrency has risen dramatically in a short period of time, and if you plan to purchase Cardano ADA / USD, keep in mind that the price can fall from current levels. It's also worth noting that the price of Cardano is usually associated with the price of Bitcoin, so cryptocurrency investors should keep Bitcoin on their radar as well.

Cardano (ADA) is currently trading around $ 2.13, but a price drop below the $ 2 support will be a clear sell signal. The next price target could be about $ 1.8 or even $ 1.5, but if the price rises above $ 2.30, we'll be on our way to $ 2.50.

a summary

Cardano has risen above $ 2, but now is probably not the right time to buy this cryptocurrency. Cardano is overvalued, according to cryptocurrency trader Lark Davis, and the recent price appreciation has a less fundamental nuance. There is no downside market danger at this time, but a price drop below the $ 2 support will be a clear "sell" warning.