Cardano Price Analysis: ADA/USD defies gravity with over 17% price increase

Cardano (ADA) catapulted to $0.1550 during early Asian hours and retreated to $0.1537 by press time. The coin has gained over 17% in the recent 24 hours and over 23% on a week-on-week basis. Cardano's market value catapulted to $3.95 billion, while its average daily trading volume is registered at $735 million. The coin takes the sixth position in the global cryptocurrency market rating.

As the FXStreet previously reported, Cardano team initiated the process of Shelly update, which might have served as a trigger for the strong price increase.

ADA/USD: Technical picture

On the daily chart, ADA/USD is moving within a sharp bullish trend. The RSI has flattened, though it is still on the overbought territory. The local support is created by a psychological $0.1500. Once it is broken, the sell-off may be extended to $0.1430 (the upper line of the daily Bollinger Band). The next support comes at $0.1386-$0.1350 area, which includes the upper boundary of the previous consolidation channel. 

On the upside,  a sustainable move above the intraday high of $0.1550 will take the coin to uncharted territory with the next resistance at $0.1600. Once it is out of the way, the upside is likely to gain traction with the next focus on $0.1700.

ADA/USD daily chart