Stage Set for Cardano (ADA) Recovery After Crypto Market Crash
Cardano (ADA) is having a bit of a moment, reversing its recent losses and surging over 12% higher over the past 24 hours as the overall crypto market works its way back up after the most recent crash following China’s decision to double down on crypto transactions. At the time of writing, ADA/USD is trading at around $1.70.
Supporting Cardano’s latest bullish moves is IOHK’s recent announcement about launching a token converter that will let users move their ERC20 tokens on to Cardano’s blockchain network, converting them into ADA tokens. The converter offers significant potential to drive up the blockchain network’s appeal among DeFi projects going forward, a majority of which still leverage the Ethereum network as on date.
ADA/USD received an additional boost from the decision by iMining – a Canada-based publicly traded company, to support Cardano’s staking services. The move will allow iMining’s users to delegate their funds towards ADA tokens via the company’s stake pool, a move that will increase the adoption of Cardano among investors.
Ever since Cardano launched staking in August 2020, the popularity of this cryptocurrency has been rising, with it occupying the fifth rank in terms of market cap as per CoinMarketCap data. Its features, especially its energy efficient PoS protocol and scalability have been generating higher interest for the digital asset among not only retail investors but also institutional ones lately, who see a lot of potential for growth and adoption.
Key Levels to Watch
Despite the promising fundamentals and the slight recovery currently underway, the immediate outlook on Cardano remains bearish, especially on analysis of moving averages on the four hourly chart. Although, the MACD indicator on the H4 chart is signaling a bullish bias.
For now, the price is sitting just above a crucial resistance level at $1.63 and moves will depend on how much buying interest can be generated in the near-term. If more buyers step in soon, we could see Cardano’s price taking a shot at rising above the key $2 level. On the other hand, if the mood in the volatile crypto market dampens further, we could see ADA/USD turn bearish once again and head down towards the next support level which sits around the $1.50 level.
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