Cardano (ADA) to Jump Higher Soon, After Missing Today’s Crypto Rally?
Skerdian Meta • 2 min read
Cardano has turned out to be one of the most bullish cryptocurrencies out there, since the bearish period ended in the crypto market in late July. It is one of the only digital coins that has overtaken the high of May, which stood just below $1.50, and earlier this month, it broke above the big round level at $3, so the bullish trend is in full swing here.
Even during the bearish period, Cardano was holding much better than most cryptos, only losing around 60% of its value, while most of the market lost from 65% to 80% during that crash. ADA/USD formed a support zone around the $1 level, which didn’t let sellers push any lower, despite other cryptos making lower lows until late July, when the bullish reversal came.
Since the bullish momentum resumed, moving averages have been doing a great job in providing support and pushing the price higher on the H4 chart. The 50 SMA (yellow) in particular has been doing a great job as support during pullbacks lower, and while Cardano missed the jump in the crypto market today, that moving average is still holding as support on this timeframe chart, which suggests that we will see a jump off the 50 SMA soon.
Cardano Analysis – ADA/USD Daily Chart
On the daily chart, moving averages haven’t been able to keep up with the price, but the 20 SMA (gray) is just catching up now, so it should provide some support and will probably give buyers a reason to give ADA/USD another push to the upside.
So, the technical picture looks optimistic, while fundamentally, Cardano appears to be in a good position, with the Alonzo hard fork rolling up. Last week the team behind the network development announced that smart contracts have been deployed on the testnet of the network. Next comes final testing and integrations by the developers, 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.
So everything looks great for Cardano, and we might actually open a buy position in this crypto. Now that $3 has been broken, the $5 level is next, and I don’t think it will take long before ADA/USD gets there. Follow our live forex signals page to see if/when we take that trade, if you are not a registered member yet.