Cardano [ADA] is on fire. The altcoin rush triggered by Ethereum [ETH] has swept in and prompted several crypto-assets to register fresh peaks. ADA accrued weekly gains of more than 32%.
It has seen a great upside potential after consolidating for a good two months. The sharp-sell-off in the third week of April was cut short by the quick recovery that has been on an extension even a week later to May.
Over the past 24-hours, Cardano [ADA] was up by 7.45% which pushed it to $1.70. At the time of writing, the digital asset recorded a market cap of $55.43 billion and a 24-hour trading volume of $5.83 billion.
Cardano [ADA] Daily Price Chart:
Cardano had revealed extraordinary gains this week despite shaping a long-term rising pattern on the 24-hour price chart. By convention, the pattern formation signals a downward price movement, which ADA did undergo. But the downtrend was brief and for a negligible period as it soon marched to unchartered territory.
The rising price has also found crucial backing from the growing Volume. The mouth of the Bollinger Bands was widespread depicting a period of high volatility in the coin market which could significantly push the coin’s price higher.
Cardano’s technicals have continued to support the rally. The high closing green bars of Awesome Oscillator demonstrated an increasingly strong bulling momentum in the market.
The gauge between the signal and the MACD line increased after the bullish crossover which indicated the rising buying demand in the ADA market.
The RSI is also to shoot above the overbought region as it hovered near 70-level. This signified that there is still room for growth for the ADA token which could be a bullish catalyst for its price.
The above charts suggest that Cardano could be headed for a breach of the $2 psychological resistance point in the coming days. The support areas, on the other hand, were found to be at $1.27, and $1.08 respectively.