Cardano Holds Upside Momentum as It Faces $1.49 Resistance Zone
For the last 24 hours, Cardano (ADA) was down by 1.28%, trading at $1.432 with a trading volume of $1,512,871,370.17. Its market capitalisation stands at $45,710,014,016, which makes it ranks the fifth-largest cryptocurrency.
The 4-hour MACD indicator signals that the price of ADA is in a slow uptrend against the US dollar. Although the MACD lines are above the 0-level, signalling that the crypto is an uptrend, the lines appear close to each, thus showing a weak uptrend.
This is further confirmed by the presence of short candlesticks and short wicks that indicate an increasingly balanced strength ratio between the sellers and buyers as neither side has been able to gain the upper hand so far, and the prices tend to change slowly.
Also, the presence of Doji candlestick is showing indecision by market layers as buyers and sellers seem to be in equilibrium. Therefore it ensures that the cryptocurrency is in the sideway phase (consolidation phase).
However, the positive gains are likely to change as indicated by Cardano forming a death cross, characterised by the 50-day moving average crosses below the 200-day moving average. This signals a bull trend switching to a bear trend. A downward is likely, and ADA may see a decline and rest at the $1.37 support zone, affirming the presence of a small head and weak shoulders, which signals a likelihood of an increasing interest in selling.
Cardano has seen a positive uptrend and can be explained by the broad applications of its blockchain network that allows for multiple types of crypto assets to be traded on it.
ADA has been maintaining positive gains in value after experiencing massive growth in 2020. More investors are interested in the crypto token, and it is a good idea to keep an eye on the crypto asset.
Cardano blockchain has been dubbed as “Ethereum killer", as it has the potential to overtake Ethereum. The recent upgrades of the decentralised proof-of-stake public blockchain and crypto project set the foundation for more use cases on the Cardano blockchain, such as non-fungible tokens, Stablecoins, and decentralised finance.
Although ADA’s market cap stands at $45 billion, which is still far away from ETH’s $256.08 billion, ADA prices have increased more than 500% since the beginning of this year. ADA began 2021 at $0.18 and was trading at $1.434 during the intraday.
The bear market thesis could be invalided if the increasing number of buyers outweighs sellers, and this may see the crypto climb to the $1.49 resistance zone. This holds some truth because there has been gaining interest in ADA, which results in it witnessing an uptrend.
Image source: Shutterstock