• Cardano enjoys strong growth amid improved sentiments.
  • A sustainable move above SMA500 weekly will unlock bullish potential.

Cardano (ADA) is the tenth-largest digital asset with the current market value of $1.3 billion. The coin has been one of the best-perfroming assets with over 15% of gains in recent 24 hours. At the time of writing, ADA/USD is changing hands at $0.0515, which is 57% higher from the beginning of the year. Cardano's average daily trading volume is registered at $168 million.

Cardano is poised for growth

According to the Weiss rating agency, the project is well-positioned for further development. The experts place it higher than EOS, while some popular crypto twitter analysts note that the coin is ready for a new bullish wave. 

Thus, the crypto trade known as ‘Crypto Rand’ pointed out that ADA has broken an Ascending Triangle pattern and has already taken out has taken the first resistance are.

From the fundamental point of view, Cardano is in the process of transformation from a science project to a commercial product with both IOHK  the company behind Cardano, and at the Cardano Foundation, are engaged in product marketing and building a commercial side of the blockchain. according to Charles Hoskinson, the CEO of IOHK.

In the recent YouTube update, Hoskinson noted that  Shelley Incentivized Testnet should be released on January 29 as the team had been already working on it. Moreover, new statisitcal data on the testnet operations gathered from various sources will be published at the end of the months.

ADA/USD: technical picture

The initial support is created by the intraday low at $0.0474. It coincides with the previous top created on January 21. Once it is cleared, the downside momentum may gain traction with the target at $0.0438 (SMA200 daily) and $0.039 (SMA50 daily). This area is likely to slo down the bears and serve as a jumping-off ground for a recovery. 

On the upside, the critical resistance is created by SMA50 weekly at $0.0562. We will need to see a sustainable recovery above this area to improve the long-term technical picture. Once it happens, $0.06 will come into focus. 

ADA/UDS daily chart

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

BTC/USD may retest SMA200 weekly if $6,500 is not retaken any time soon.

BTC/USD is hovering around $6,300, down 1% on a day-to-day basis. The first digital coin has been moving within a short-term bearish trend amid expanding volatility.

More Bitcoin News

Ripple Price Prediction: XRP/USD short-term bulls aim at $1780

Ripple (XRP) has been range-bound recently. The third-largest coin settled above $0.1700, which is a good signal, but the further upside seems to be limited so far.

More Ripple News

ETH/USD locked in a range; short-term recovery capped by $134.40

ETH/USD is changing hands at $132.00, mostly unchanged both on a day-to-day basis and since the beginning of Wednesday. The second-largest digital asset has been moving within a short-term bearish trend amid high volatility. 

More Ethereum News

Triangle pattern breakout hints BCH/USD rally beyond $250

Bitcoin Cash price if dealing with increased selling activity on Wednesday just like the other major cryptocurrencies. BCH/USD is down 1.33% on the day while the price hovers above the initial short term support at $214.

More Bitcoin Cash News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: Coronavirus will either kill Bitcoin or make it stronger

Bitcoin is about to finish the second positive week in a row. The first digital coin has recovered from $5,680 and came close to psychological $7,000 during the week.

Read the weekly forecast

BTC

ETH

XRP