Cardano Price Analysis: ADA/USD bulls set their eyes on SMA50 weekly

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

Tanya Abrosimova Independent Analyst

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.