The broader cryptocurrency market has been performing well over the past week. In less than a week, BTC has surged from around $36,000 to $43,000. This price action has caused a ripple effect across the cryptocurrency market.
Cardano (ADA) has benefited from this uptrend, having lost much of its value during the January bear market. ADA is still over 60% below its all-time high, but the bullish sign created over the past week could mean that more gains are on the way.
Cardano gears for an uptrend
ADA has been on a downtrend for a long time, but the current bull market has allowed it to form a local resistance. This resistance shows that the asset could be gearing for a takeoff. Over the past week, major gains have been formed across the cryptocurrency market, but this has not been the case for Cardano, as it has failed to make any major rebound.
A look at ADA’s price action over the past week shows that the token has traded between the $1.02 and $1.25 levels. As it consolidates at these levels, the rest of the market has recovered significantly, with some coins making double-digit gains each day.
While the ADA uptrend has been slow, the numbers show that it has formed local support levels. In this case, it could bounce off this support zone. ADA’s previous performances show that after forming local resistance levels, its value has nearly grown three times, which could be the case at the current prices.
ADA eyes $2
If history repeats itself, ADA could make an up to 50% bounce, in which case the prices will go to $1.55 and $1.65. From here, the asset could make another local resistance zone, from where the price could make a gain towards $2 and beyond.
Amidst the positive signs on ADA’s prices, the Cardano network is also growing. SundaeSwap was launched on the blockchain, making it the first DEX to debut on Cardano. The launch of SundaeSwap has increased ADA usage on the network, which makes the token prime for an even major bounce.
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Source: https://insidebitcoins.com/news/cardano-prime-for-an-uptrend-after-forming-local-resistance