ADA Surges Above $1 on Comments About Cardano Adding Burn Mechanism

Posted Thursday, March 24, 2022 by
Skerdian Meta • 2 min read

Cryptocurrencies had a bullish day yesterday and they are reversing higher today after a small retreat lower earlier. Bitcoin (BTC) is trading above $42,000, while Ethereum (ETH) is above $3,000. They have been bullish for more than a week now, so perhaps this could be the beginning of the major bullish shift after several bearish months, although the bullish momentum in Solana seems weak, and it is facing resistance now. ADA coin, on the other hand, has been showing strong bullish momentum lately, climbing above $1.

Cardano Daily Chart – ADA Pushes Above the First Resistance

ADA coin facing the 100 daily SMA now

Since the beginning of last week, Cardano has been one of the best performers on the Crypto Top 10 by market cap. It has been quite bearish since September, after the rollout of the Alonzo upgrade, having missed the crypto surge in October and early November. It kept making new lows, even in recent weeks, as the decline in the crypto market stopped, showing increasing weakness, but that might be reversing now.

ADA/USD has increased from a low of around $0.75, where it formed a support zone, to $1.07, where it is trading now. That’s a 50% increase, and the improvement in the crypto market has also helped the situation. This cryptocurrency broke above the 50 SMA (yellow), which has been acting as resistance since October, but now it is facing the 50 SMA (yellow). Above that is the next resistance level at $1.50.

Will Cardano Add a Burn Mechanism?

Cardano’s founder, Charles Hoskinson, has announced that the first Hydra Heads, which is a critical element in Cardano’s scaling journey, are launching on the public Cardano testnet. Hydra refers to a collection of Layer 2 solutions aimed at improving network security and scalability.

However, the main reason for the surge in the price of ADA has been a tweet by WatcherGuru, about the potential implementation of a burn mechanism for Cardano. That got the attention of the Cardano community which jumped in to buy ADA tokens. Now the price is above $1, which is a major milestone, but buyers still have some way to go, as they’ll have to push above the 100 SMA (green) that they are facing right now, and then continue above the next resistance zone at around $1.50.