Cardano (ADA) Pulls Back After Touching New ATH: Price Headed Higher?
Cardano (ADA) has fallen under the $3 mark after soaring to a new ATH in the previous session, most likely as traders indulge in profit
Cardano (ADA) has fallen under the $3 mark after soaring to a new ATH in the previous session, most likely as traders indulge in profit taking. However, it is making its way back up again early on Friday, and analysts expect this to be a temporary pullback even as it gears up for a leg higher amid optimism about the Alonzo hard fork coming up in a few days. At the time of writing, ADA/USD is trading at around $2.98.
Powering the optimism was the announcement from IOHK – the firm behind the development of Cardano’s blockchain, that smart contracts have been deployed on the testnet of the network. The next step will see developers conduct final testing and integrations, followed by an upgrade of mainnet nodes by SPOs before the mainnet upgrade. IOHK also confirmed that the progress made was on schedule for the Alonzo HFC to take place on September 12.
Bullish Momentum in Overall Crypto Market
Cardano’s price has been on the rise not only because of optimism surrounding the upcoming upgrade which will give its network smart contract capabilities but also because of the positive mood towards cryptocurrencies in general. With market leaders Bitcoin and Ethereum on the rise, altcoins including ADA have been registering strong gains over the past few weeks and the buoyant mood could sustain the rally in the coming weeks as well.
According to popular crypto analyst and trader Michaël van de Poppe, Cardano is also reaping the benefits of the second phase of a super bull cycle currently underway in the wider crypto sector. Earlier this week, analytics firm Glassnode observed that the conditions look set for a pre-bull market or an end of the bearish mood, which could signal a stronger uptrend across the board. Analysis of on-chain data of major cryptocurrencies also supports the forecast for more growth in their value, which in turn will also benefit other players in the market like Cardano.
Key Levels to Watch
Technical analysis of the H4 chart of ADA/USD suggests a strong bullish bias among moving averages and leading technical indicators MACD and momentum. Cardano’s price is sitting well above the pivot point at $2.76 and it looks like buying interest is building up once again.
An uptick in buying pressure can soon take ADA back above the $3 mark towards testing resistance at $3.05. A break beyond this can see investors driving the price beyond the ATH towards newer highs.
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