Cardano holds its 6th position in terms of market capitalization dominating its acceleration even in the bearish crypto market. At a current value of $0.587, ADA is worth $19,800,967,465 at just 75% liquidation of its total supply.
The swift price rise of Cardano could be an indication of the massive potential it has and how buyers are taking advantage of this low valuation to acquire more tokens. On a broader trend, BTC seems to have been directing the altcoin valuations; with its subsequent downfall. Crypto enthusiasts are also selling their holdings in altcoins, causing a ripple effect.
Cardano is currently trading highly below its 100 DMA, and since the curve of 100 DMA is falling, it is safe to state that the coin is negative in the long term but shows a momentum to turn positive in the short term. Read ADA coin price prediction to know if you should invest currently or not!
There are some immediate resistance and psychological levels to watch out for since ADA valuations can witness volatile action. The current regression trend for Cardano indicates $0.60 as the upper band of exiting the negative sentiment. Hence, ADA maintaining a price trend above $0.60 for the short term can induce further buying sentiment for enthusiasts waiting for the volatility to conclude.
One should take cognizance of the immediate resistance level of $0.774 and the 100 DMA curve to analyze the long-term price momentum for Cardano. A buying support or buying zone developed near the lower end of $0.42, which has now elevated towards $0.58.
These levels would be instrumental in bringing more buyer traction in the coming days under the condition that ADA manages to sustain current levels without succumbing back to the negative zone of its regression trend below $0.423.
Relative Strength Index has turned fairly positive as it indicates a level of 50 from the recently beaten-down value of 24. Since this bounce-back has been witnessed after a decent passage of Cardano hitting a fresh low of $0.384, current levels are a clear testament to the level of enthusiasm witnessed by ADA buyers.
Positive elements for ADA would be the rise in its transaction volumes which have increased by 17% in the last 24 hours. In a shorter time frame, the price of Cardano can potentially retest its 100 DMA curve, which would bring a significant upside potential.
Source: https://www.cryptonewsz.com/cardano-attempts-to-breach-the-negative-regression-zone/