Alonzo Keeps the Sentiment Bullish for Cardano ADA, As it Holds on to Gains While Cryptos Slide Lower
Cardano shows bullish signals, as it keeps climbing higher
Cardano was showing some bullish signs even during the major bearish period in the cryptocurrency market during the previous two months. It didn’t lose as much value as some other cryptos, which lost up to 80% of their value, while Cardano only lost less than 60%. The other bullish sign was that the lows were holding steady above $1, while some other digital coins kept sliding lower during June and July.
When the jump finally came two weeks ago in the crypto market, ADA/USD benefited from it and gained around 40%, as the price moved just above $1.40 in this crypto pair. Buyers pushed above the 20 SMA (gray) on the daily chart, but were failing to close Cardano above the 50 SMA (yellow).
Although, they gave it a push yesterday, sending Carano around 12 cents higher from the bottom, which was another bullish sign. Cryptocurrencies have been retreating in the last several days, with Bitcoin losing $5,000, while ADA/USD continued to push higher, showing that Cardano traders are ready to buy once the situation improves.
Cardano Live Chart
Alonzo Hard Fork Improving the Sentiment for Cardano
The sentiment in the crypto market has been improving in recent weeks, despite the reversal down in the last several days, while Cardano has been pushing higher. Today ADA/USD traders tried the downside but the price has pulled back up, so sellers aren’t having much success.
This points to further upside momentum, at least until the 100 SMA (green) and the top of the range, which come around $1.50. The implementation of the Alonzo hard fork, which is part of the Goguen era, has improved the sentiment for Cardano, since this will allow users to run smart contracts. Hence the bullish signals in Cardano during this time.
Should We Buy Cardano?
The move to the bottom at the $1 support area was a great opportunity to buy Cardano. The 200 SMA around $1.15 was also a good place to buy, so a pullback down to that moving average will offer a good opportunity too. Otherwise, if we don’t see a pullback in ADA/USD a break above the resistance at $1.50 would be a good chance as well.
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