Cardano Price Analysis: ADA/USD beats the market with 8% gains

Cardano (ADA) is the 11th largest digital asset with the current market value of $1.3 billion, The coin has gained over 8% in the recent 24 hours to become one of the best-performing digital assets out of top-20. At the time of writing, ADA/USD is changing hands at $0.0503, having recovered from the recent low of $0.0427 hit in April 10 amid major sell-off on the cryptocurrency market.

Cardano’s Shelley Stakepool testing started

The project is moving fast towards the transition on the proof-of-stake consensus algorithm. The team started testing Shelley via the Pioneer’s program launched on Monday, May 11. It means that limited pool operators will work with the node for the Shelley mainnet.

Last month, Cardano’s founder Charles Hoskinson explained the key features and principles of the Shelley mainnet launch. He said that it would be rolled out in several phases to ensure that only a fully functioning network goes live. He also confirmed that Shelley will be launched in 2020. 

ADA/USD: Technical picture

On the daily chart, ADA/USD settled above the middle line of the daily Bollinger Band at $0.0480, which now serves as local support for the coin. If it is broken, the sell-off may continue towards the recent low of $0.0427 reinforced by daily SMA100 and SMA200 clustered around that level.  The psychological $0.0400 is likely to slow down the bears.

On the upside, the initial barrier is created by the upper line of the 4-hour Bollinger Band on approach to $0.0540. Also, this level stopped the recovery on May 8. Once it is out of the way, the upside is likely to gain traction with the next focus on $0.0600.

ADA/USD daily chart