Uptick in Cardano development activity boosts ADA price

The Vasil hard fork, from the Cardano network, is close to happening, which has been causing a lot of entries on the Github of said project. With this, Cardano’s development activity reached a new all-time high, in turn generating a significant rebound in the ADA price.

At the time of this writing, ADA is trading at $0.54, accumulating a loss of 13.78% in the last 24 hours, but maintaining a gain of 5.63% in the last 7 days.

With the recent boost, the market capitalization increased to $18.4 billion, which again makes this coin the 7th largest on the market.

According to data from Santiment, the Cardano development team continued working towards the upcoming update, even as prices plummeted. Now that the market is breathing a certain air of positivity, it has taken the opportunity to gain prominence with a considerable rebound.

Cardano Technical Analysis (ADA)

Today on the ADA vs USDT daily chart we can observe excellent behavior, capable of creating a bullish transition of the short-term trend.

A few hours ago the price was hampered by a resistance of $0.62. A pullback is likely underway. Then, we can expect more shopping.

To think about short-term sales, we should first see supports being broken through. The closest is at $0.47.

It looks like we will be seeing a wider respite in the coming hours/days. However, there is a previous dominant bearish force that could soon curb this bullish sentiment.

Cardano Technical Analysis (ADA). Source: TradingView.
Cardano Technical Analysis (ADA). Source: TradingView.

The rally is still not enough to confirm that the bulls are in full control

When we analyze the weekly price chart, we note that the recent bullish jump of Cardano is not yet decisive. In fact, it seems that this is a simple setback before falling back down.

Since September 2021, the ADA price has been manufacturing lower and lower lows, and as long as this direction does not change, then we cannot rely too much on rallies like the current one.

However, the price has retreated a lot from its all-time high (more than 80%), so it is very likely that the bottom is very close. The oversold RSI supports this view. The nearest support is at $0.34.

All our publications are informative in nature, so in no case should they be taken as investment advice.

Previous Post
Next Post