Triangle Supports Cardano (ADA) at $2.05 – Buckle up for a Buy Trade

The ADA/USD coin pair extended its overnight winning streak and drew further bids above the $2.1200 level. Cardano was trading at $2.149902 by 18:26 (22:26 GMT) on Wednesday, which was up by 10.30%. This was the biggest one-day percentage gain since August 18. The bullish move pushed Cardano’s market cap to $68.520001, or 3.58% of the total cryptocurrency market cap.

At its peak, Cardano’s market cap was $71.557257B. Cardano has seen a surge in value, having grown by 19.22% over the past seven days. The volume of Cardano traded in the twenty-four hours up to the time of writing was $4.844985B, or 4.14% of the total volume of all cryptocurrencies. It has been trading in a range of $1.6808 to $2.2510 in the past seven days. The Cardano is trading above $2.12, with a 24-hour trading volume of $5,104,085,114. Cardano rose by 4.61% in the last twenty-four hours.

However, the upticks in the ADA coin were mainly sponsored by the latest signs of recovery in the broader crypto markets. This was witnessed after CoinShare said that the Ethereum competitor had recorded inflows worth $1.3 million in the past week. This year, to date, Cardano has seen institutional investments amounting to $28 million.

On the USD front, the broad-based greenback maintained its upward rally of the previous day, hitting a nine-month high against the Euro and the Australian and New Zealand currencies on Thursday, as the market risk-off mood tends to underpin the US dollar, due to its safe-haven status.

Meanwhile, the recently released minutes of the July Fed meeting indicated that the officials had discussed implementing tapering plans before the end of this year, which boosted the US dollar further. Looking forward, market traders will keep their eyes on broader crypto market moves, which will determine ADA’s price action over the next couple of days.

On the technical front, trading in the ADA/USD is neutral, above the pivot point level of 2.050. On the higher side, the resistance stays at the 2.23 level and a bullish crossover above this could lead the ADA/USD towards the 2.3440 level. Conversely, a bearish breakout at the 2.05 pivot point support could trigger selling between 1.93 and 1.75.

The RSI and the MACD are holding in a buying zone, and the 50 day moving average also supports the buying trend in the ADA/USD. Thus, our focus today should be on the 2.05 level, as below this, we can expect a selling trend and vice versa. Good luck!