Cardano noted a minor slump in its price action which brought down its weekly gains to 31.95%. While many top altcoins have blasted past through their respective all-time highs, ADA is far from its peak that was established back during the 2017 bull run
However, a major upswing came into play after the token broke June 2020’s resistance at $0.17 following which it crossed several critical hurdles.
Despite a minor hiccup earlier this week, Cardano [ADA] was still up by 3.47% which catapulted its value to $0.431. At the time of writing, the crypto-asset registered a market cap of $13.43 billion and a 24-hour trading volume of $3.65 billion
Cardano [ADA] Daily Chart:
Cardano’s uptrend has been consistent as it continued to oscillate between the trendlines of an ascending channel. As per convention, this pattern formation results in a bearish breakout following its completion which could signify a potential correction in the offing.
However, the moving averages continued to depict a positive behavior. Both, the 50 DMA [Pink] as well as the 200 DMA [Purple] were well-below the ADA price candles forming crucial support points. The rising gauge between the two further attested to the rising optimism in the ADA market.
Cardano has faced a stiff resistance at the current price level. But MACD indicator depicted that the bullish momentum is intact.
The Stochastic RSI headed to the overbought zone after a month which could suggest a cool-off phase for the crypto-asset. The RSI, on the other hand, turned down from the overbought region opening up possibilities of further upside and indicating that a local top is yet to transpire.
Is Cardano’s most significant price action yet to take place?
If ADA gains the necessary momentum, it could, in fact, target the overhead resistance level of $0.46. A breach of this point could prompt the coin to near yet another resistance level of $0.53.
Support levels for Cardano was found at points $0.39, $0.27 and $0.158 respectively.