The ADA/USD cryptocurrency pair extended its previous session’s upward rally and drew some further bids around above the $1.35 levels. The Cardano price is currently trading at $1.35 with a 24-hour trading volume of $2,319,331,539. Cardano is up 4.47% in the last 24 hours and is supported by the weaker U.S. dollar. The U.S. dollar fell slightly during the early European session as investors remained concerned about a tightening of monetary policy from the U.S. Federal Reserve should inflationary pressures continue to intensify.

Meanwhile, the upbeat market mood leaves extra downside pressure on the U.S. dollar, which further supports the ADA/USD pair. Apart from this, the buying bias could also be tied to reports suggesting that the Cardano founder and IOHK CEO, Charles Hoskinson, is working on launching a Cardano smart contract platform in El Salvador. He also shared that he has completed the application process to go to El Salvador for a state visit. ADA/USD is currently trading at 1.343057 and consolidating in the range between 1.307131 and 1.349070.

The Cardano founder also confirmed that he has completed the application process to go to El Salvador for a state visit. As per the keywords, “We have completed the application process and submitted all the documents and requests for a state visit to El Salvador. In that way, we will meet the President of El Salvador in the coming days. After negotiating with some political parties and authorities in El Salvador, they have decided to go beyond Bitcoin legalization and digitize the country. He showed a clear interest in it.”On the other hand, the market trading sentiment extended its early-day bullish performance and is still flashing green during the early European session. However, the positive attitude of Asia-Pacific stocks and upticks in the S&P 500 Futures tend to highlight the risk-on mood, which was being supported by the positive development over U.S. President Joe Biden’s infrastructure spending plan. Moreover, the upbeat market moves could also be tied to the previously released upbeat U.S. data, which raised hopes about the global economic recovery.

On the data front, the U.S. Core Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred gauge of inflation, hit the highest level in the near three decades with 3.4% YoY figures in May. Apart from this, the previously week-released final GDP report confirmed that the U.S. economy grew by a 6.4% annualized pace during the 1st-quarter of 2021, matching the preliminary estimates. This, in turn, offers some support to the market trading sentiment.

As a result, the broad-based U.S. dollar failed to extend its early-day bullish performance and turned sour on the day as the market’s upbeat mood weighed on the safe-haven U.S. dollar and extended some support to the ADA/USD crypto pair. Therefore, the losses in the U.S. dollar were seen as one of the critical factors that helped the coin stay bid.

ADA/USD – Quick Technical Analysis

On the technical front, the ADA/USD pair continues to trade choppy at the 1.3347 level; however, there’s a slight bullish momentum on the four hourly timeframes. We can also see the symmetrical triangle pattern keeping the ADA/USD pair in consolidation, especially in between a tight trading range of 1.4067 – 1.2175 area. Bullish crossover of 1.4067 level can trigger buying trend until 1.6237 level whereas, the breakout of 1.2175 level can extend selling trend until 1.013022 level. Good luck!