Cardano showing bullish pressure this week turning bearish once again

Bullish Attempt in ADA Before the Cardano Vasil Hard Fork

Posted Thursday, June 9, 2022 by
Skerdian Meta • 2 min read

Cardano which is ADA coin’s parent network has been growing over the 4 years of its existence, with ADA benefiting from the expansion of the network. Cardano has a roadmap of clear objectives for the future, aiming at improving further its blockchain network. After Shelley decentralization era, Cardano proceeded with Allegra hard fork in December 2020 which added the option to lock the coins.

Now it’s the era of Goguen, after the Alonzo hard fork was released in September 2021. This enabled building of decentralized applications (DApps) on Cardano. Vasil hard fork’s notable feature is the introduction of pipelining, which will enhance block diffusion and therefore improve scaling. Another feature includes enhancing the CIP 31, 32, and 33. The hard fork is also going to improve the experience of developers on the Cardano blockchain.

Cardano H4 Chart – MAs Turning Into Support for ADA

ADA has moved above all moving averages on the H4 chart   

ADA has been bearish since November 2021 as our analysts explained in the 2021 Cardano forecast, but might see dome benefits from this update. We have seen some bullish attempts in recent weeks for Cardano, although this update might have already been priced in by the time it is announced. This means that we might see some bullish pressure in the ADA coin leading to this event.

On the H4 chart above, moving averages were providing resistance during the downtrend, but now the price has moved above them and they have turned into support. This is a bullish sign, although ADA should push above May’s high, because the highs have been getting lower, which is a bearish pattern.

Cardano Daily Chart – The 50 SMA Still Acting As Resistance

ADA will turn bullish when it pushes above all MAs on the daily chart

On the daily chart, we see that moving averages have been defining the trend since early last year. They were acting as support when the trend was bullish until September 2021, then turned into resistance after the bearish reversal lower. The 50 SMA (yellow) rejected the price at the end of May after the bullish attempt, but ADA/USD has returned back at this moving average pretty quick, which is a bullish signal. Although, MAs are still providing resistance so until buyers push above then, Cardano will be considered bearish.

Cardano Coin ADA Live Chart 

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