Coinspeaker
Cardano (ADA) Shows Significant Upside Potential: Are More Gains in Store?
Cardano
ADA
$0.36
24h volatility:
7.3%
Market cap:
$12.81 B
Vol. 24h:
$371.78 M
is currently on an upward trajectory, having recently surpassed the $0.340 resistance level. The cryptocurrency began its recovery from a low of $0.3220 and is now trading above $0.350, with significant technical support. The price broke through a key bearish trend line at $0.3430 on the hourly chart, which has contributed to the current bullish sentiment.
ADA reached a high of $0.3587 but is now consolidating gains. It remains above the 23.6% Fibonacci retracement level of the recent upward move, indicating ongoing strength. However, resistance is expected around $0.3580, with the next major levels at $0.3620 and $0.3650. If ADA can surpass the $0.3650 resistance, it could potentially rise toward $0.380 and even higher.
Photo: TradingView
Technical Indicators and Market Dynamics
Several technical indicators back the optimistic view for ADA. The hourly MACD (Moving Average Convergence Divergence) is showing positive momentum, meaning the short-term average is above the long-term average. This suggests that the price might keep rising. The MACD helps track changes in trend strength, direction, momentum, and duration.
The Relative Strength Index (RSI) is currently above 50, which signals a strong market condition. The RSI gauges how quickly and significantly prices are changing, helping to identify if an asset is overbought or oversold. A reading over 50 typically indicates that the asset is in an upward trend, suggesting that prices may continue to rise.
Additionally, ADA’s price action is bolstered by favorable moving average signals. Both the Exponential Moving Averages (EMAs) and Simple Moving Averages (SMAs) for periods of 10, 20, and 30 hours are indicating buy conditions. EMAs react more swiftly to recent price changes compared to SMAs, and their alignment in a bullish pattern reinforces the current positive sentiment.
If ADA fails to break through the $0.3580 resistance, it could face a decline. Key support levels are at $0.350 and $0.3440, with a more significant support zone around $0.330. Should the price drop below $0.3440, it might test the $0.320 level, where additional buying interest could provide stability.
Cardano Founder Addresses High Market Cap Claims
Charles Hoskinson, Cardano’s founder, has recently addressed claims that ADA’s high market cap is due to locked staking pools. He clarified that Cardano employs a liquid staking model, which allows ADA tokens to remain available for trading and DeFi activities. This model supports Cardano’s principles of self-custody and refutes claims of an artificially inflated market cap.
With strong technical indicators and ongoing support from the Cardano community, ADA appears well-positioned for potential further gains. Investors should watch key resistance and support levels to gauge future price movements.
Cardano (ADA) Shows Significant Upside Potential: Are More Gains in Store?
