Cardano [ADA] has gained significant momentum as altcoins headed for reclaiming the dominance in the market. The eighth-largest cryptocurrency by market cap was up by 54.49% over the past week rallying alongside its peer alts propelled by aggressive buying from the bulls.
With this price action, ADA broke the 2.4 years of rangebound consolidation and inched closer to crucial resistances not seen in a long time. However, several altcoins appeared to be retracing some of the gains made. ADA, as well, suffered a minor setback as it noted a downside correction of 1.45% over the last 24-hours. It was being traded at $0.167 as it recorded a market cap of $5,12 billion and a 24-hour trading volume of $1.99 billion.
Cardano [ADA] Daily Chart:
ADA’s price started a strong increase after it broke the key $0.11 resistance level against the US Dollar. The coin accumulated significant gains and it broke many hurdles near the vital $0.150 resistance.
Furthermore, the upward move gained pace above the $0.165 level and the value settled well above the daily moving averages. After exhibiting hints of a death cross, the 50 DMA [Pink] spiked following the bullish price action, and the rising gauge with the 200 DMA [Purple] was indicative of rising bullish pressure in the coin’s price.
Despite the fact that the bears were trying to stall the uptrend, ADA’s technicals remained strong.
The Parabolic SAR aligned below the Cardano candles depicting a bullish phase for the coin. The RSI was also in the overbought region. This essentially meant that sellers could be attracted to this level to offload their bags in the near-term thus creating a bearing pressure.
Initial support on the downside is near the $0.138 level. The next important levels were found near the 50 DMA which acted as a support point at $0.108 and $0.102 near the 200 DMA respectively.
Conversely, as depicted by the indicators as well as the moving averages, Cardano’s [ADA] strong momentum would potentially defend the current support levels and could continue to swing high. In which case, ADA could target $0.138, a level last seen in August 2018. If the coin manages to breach this level, another critical resistance would stand at $0.182.