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October 5, 2022
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Cardano (ADA) may reach the $ 1.50 mark

Analysis and fundamentals of Cardano (ADA).

  • Cardano’s ADA is now the third largest cryptocurrency in market capitalization and maintains its ranking by sustaining its upward trend for three consecutive days.
  • The ADA / USD upward trend comes as a breakthrough movement from its previous Downward Triangle range.
  • This increases the pair’s potential to reach $ 1.50 in the next few days.

The native asset of the blockchain platform, ADA, valued up 52% ​​after hitting bottom near $ 0.95 earlier this week. On Wednesday, the token formed an intraday high of $ 1.45, before being corrected slightly down to the $ 1.35-1.44 range during Thursday’s Asia-Pacific session.

Traders turned to Cardano after Bitcoin started to correct the low and hit its record high of $ 61,000.

The ADA offered an ideal haven against major cryptocurrencies after its listing on Coinbase Pro, a United States-based digital asset trading platform. Optimistic winds for ADA came from the NFT craze. Cardano allows users to create such assets on their blockchain following its latest update “Mary”.

$ 1.50

Technical indicators point to the bullish moment. The ADA / USD’s latest bullish move pushed it out of a Downward Triangle. Traders see this structure as a continuation bullish pattern, especially if bearish consolidation occurs after a strong bullish movement. ADA was trading higher before forming the Triangle.

Normally, an escape movement emerging from a falling triangle structure takes the asset upwards as much as the maximum distance between the upper and lower trendline of the structure. In the case of the ADA, the length is about $ 0.47. If someone adds $ 0.47 to the level where the token broke the Triangle, the breakout target comes close to $ 1.50.

“It is essential to note that the bullish outlook has been validated by the Moving Average Convergence Divergence (MACD)”, said analysts at CoinGape, a YouTube channel focused on crypto. “The trend momentum indicator has crossed to the positive region, suggesting that the path of least resistance is upwards.”

“In addition, the MACD line leads the way above the signal line, which is another bullish signal,” they added.

Scratchs

On the other hand, the ADA / USD Relative Strength Indicator on the four-hour chart has entered overbought territory. This increases the likelihood of the lower correction pair to counteract short-term buying sentiments. If a correction appears, Cardano risks correcting its $ 1.26-1.29 inverted resistance area.

Meanwhile, fundamental risks also threaten to reverse the ADA’s discharge course. The Cardano token has risen a lot due to the limitation of its rival Ethereum as a blockchain project. The latter suffers from problems with gas rates and higher transactions, but remains committed to resolving it by the end of this year through a long-awaited protocol update from proof-of-work for proof-of-stake.

One analyst commented that he still needs to see a single popular application operating on the Cardano blockchain, unlike Ethereum, which prides itself on projects like Tether and UniSwap. This makes the most recent earnings from the ADA more speculative, likely to falter.

Source: Bitcoinist

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