Cardano [ADA] and the wider cryptocurrency market jumped after Bitcoin broke above the $50,000-level on Monday. The collective market cap surged to $2 trillion after a dramatic decline last weekend.
ADA, which happens to be the sixth-largest crypto-asset by market cap, continued to tread cautiously even after slashing its weekly losses to 1.03%.
Over the past few months, Cardano [ADA] experienced significant momentum that can be attributed to the growing adoption of the network in addition to the overall rally in digital currencies. It posted a recovery rally of 10.73% over the last 24-hours and shot up to $1.23. At the time of writing, the crypto-asset registered a market cap of $39.68 billion and a 24-hour trading volume of $3.37 billion.
Cardano [ADA] Daily Price Chart:
Cardano’s daily chart depicted the formation of diverging Bollinger Bands which could be indicative of a volatile period for the crypto-asset which saw a renewed push towards the top. This, in turn, could also catalyze bulls for a further leg up.
The upsloping moving averages gave stiff opposition to the ADA bulls. The 50 DMA [Pink], for instance, climbed above the ADA price candles after the weekend correction. The closing green candle, however, appeared to be attempting to close above following today’s surge.
The 100 DMA [Purple], on the other hand, continued to tread below the 50 DMA as well as the candlestick arrangement.
Despite the latest price action, the technicals are yet to favor the bulls. The closing red bars of the Awesome Oscillator demonstrated a momentum that was deep in the bearish realm.
The MACD was sustained a bearish crossover, but appeared to be inching closer towards a flip to the positive side depicting a phase of gradual surge in buying demand after Cardano’s rock bottom price.
The RSI also peeked above the 50-median line after almost two weeks of downtrend which was indicative of a sentiment of high buying pressure among the traders, meaning the entry of stronger hands into the ADA market.
If Cardano bulls able to defend the current region, it could potentially target resistance areas of $1.37, and $1.48 while its support remained untested at $1.03 and $0.98 respectively.