Cardano (ADA) has experienced significant momentum by breaking through crucial resistance levels, marking a notable departure from its previous downtrend. ADA’s price increased by 3%, aligning with a broader upward trend in the cryptocurrency market, and is currently trading at $0.3437. Positive developments, such as Binance Pay starting to support ADA, have fueled this rise. Consequently, merchants worldwide can now use ADA with zero transaction fees and rapid transactions. Additionally, recent sharp increases in Bitcoin (BTC) and other cryptocurrencies have contributed to the sudden shift in ADA’s price trend.
Why Is Binance Pay Support Crucial for Cardano?
The Cardano Foundation announced via its X account that Binance Pay would accept ADA, enabling merchants globally to benefit from zero transaction fees and instant payments. Binance Pay boasts over 30 million users worldwide, which is seen as a significant step toward Cardano’s widespread adoption. Access NEWSLINKER to get the latest technology news.
The introduction of Binance Pay support followed the substantial success of the Cardano Hydra Layer-2 solution at the RareEvo Blockchain event in Las Vegas. Hydra’s demonstration on a special game called DOOM executed more transactions than the entire history of the Cardano mainnet at minimal costs. This development is a positive influence on ADA’s price.
What Are Investors Betting on ADA’s Future?
With the recent market trend shift, investors have adjusted their positions accordingly. Data from Coinglass’s Liquidation Map indicates that sentiment toward Cardano turned positive almost overnight. The map reveals that long positions ($10 million) far exceed short positions ($3 million), signifying that investors anticipate further price increases.
A closer look at the Liquidation Map shows a significant decrease in the size and volume of short positions. Most investors have established long positions at the $0.339 and $0.324 levels.
Key Insights for Investors
Based on recent developments, here are some actionable insights for investors:
- Monitor ADA’s interaction with the 200-day Exponential Moving Average (EMA) closely.
- Pay attention to the $0.3621 resistance level; breaking it could lead to a 25% price increase.
- Track the Relative Strength Index (RSI); a move above 70 could signal an overbought condition.
- Be cautious if ADA’s price falls below $0.3280 as this could negate the bullish outlook.
In summary, ADA’s recent price movement suggests a potential bullish trend by breaking the upper trend line of the falling wedge formation. This breakout signifies an end to the previous downtrend, with momentum shifting upwards. However, ADA’s price faces resistance at the 200-day EMA and the peak of the current consolidation zone at $0.3621. If these barriers are overcome, the price is expected to rise by 25% to around $0.4500.
Additionally, the Relative Strength Index (RSI) at 60.45 supports the upward momentum but indicates that the price has not yet entered the overbought zone, suggesting potential resistance at higher levels. If ADA’s price falls below $0.3280, the emerging bullish thesis will be invalidated, with the price likely targeting the $0.3220 level.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/cardano-surpasses-key-resistance-levels