Since the beginning of 2021, Cardano (ADA) has been staying safely above its 50 days moving average. In this great start, it rose in price about 80 percent. However, this long rise was not matched in the following months as the price stayed on a side trending note, with volatility reaching its high in mid-May 2021.
Cardano (ADA) managed to breakout with relatively low volume in the initial stages in August. The high volatility resulted from a huge buy-in followed shortly by heavy selling, but the market managed to close up high. The price followed a sideways trend staying like this for around two quarters. However, it did not maintain its high and again touched the 50-day moving average in September 2021.
The Accumulation/ Distribution indicator shows that the maximum accumulation was achieved in January and February. The price prediction could be made that the Cardano will stay near the 50-day moving average for the short term. If it does break out, the trader should be well aware of the volatility, and long-term options might be the way to stay away from trouble.
Since the Implied Volatility (IV) of the Cardano is low, it may be possible to enter the position and take profits as soon as the volatility hits and makes the coin skyrocket. To hedge against this position in the short term, i.e., in the case if a trader wants to enter the position long term, it is a good idea to use puts options to protect against the risk trader is willing to take.