Cardano has risen to the psychologically-significant $1 level today (January 3). This is a significant show of power in an otherwise subdued marketplace. Over the past 24-hours, ADA’s price has risen more than 11 percent, surpassing other popular cryptocurrencies such as Bitcoin.
The top 100 assets, ranked according to market capitalization only Murad-memecoin The SPX6900 has seen a greater gain of 30% in the last 24 hours. In the last week, ADA’s price has risen by approximately 20%.
Cardano’s roadmap has several noteworthy protocol upgrades planned for the next few months, even though it appears that the leap did not occur immediately. One of them is a BitcoinCardano-centric, decentralized financial system and initiatives that are being undertaken to enhance Cardano’s interoperability, decentralization and scalability.
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Fundamentals indicate that current prices may be influenced by an optimistic view of the future development of the internet, even though technical factors are the main driver. “ADA pushing through resistance like its butter. This momentum is truly explosive. Pay attention to key resistance levels, this one wants to go higher,” crypto analyst Satoshi Stacker (@StackerSatoshi) stated X.
Cardano Price Analysis
The ADA/USDT pair decisively broke through a downward trendline of several weeks that began at the high reached on December 2, near $1.32. The trendline was repeatedly tested until December before succumbing finally to a strong bullish movement. After the breakout, ADA briefly retreated down to $0.87 before bouncing back with a textbook retest.
Fibonacci Retracement Levels Anchored at December 2 High ($1.32) and Dec 20 Low ($0.76) Reveal a Positive Technical Background. Once the trendline was broken, the 0.89 Fib served as a launch pad. The 0.382 Fib (0.97) at first rejected the prices but later allowed for further upward movement.
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ADA subsequently surpassed 0.50 Fib (1.04). This level can now be used as an immediate stop-loss in the event of a minor correction. Next, if there is a bullish trend that continues into mid-term, we will see the 0.618 fib ($1.11) and then the 0.786 fib ($1.20).
ADA is now above all of its moving averages, including the 100, 50 and 200 exponential moving averages, on the chart for four hours. It is notable that the 20 EMA and the 50 EMA have crossed their respective 100 and 200 EMAs. This shows a shift in momentum to the bulls. Volumes also support the breakout scenario. The 24-hour volume is up 14.94% to $1.67 Billion.
The Relative Strength Index on a four-hour basis shows ADA in overbought conditions. It shows a lot of buying power but could also indicate a potential for a short-term pullback Should traders take profit?
Chart from TradingView.com, image from Shutterstock
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Source: www.newsbtc.com
