Wow, Cardano has been on fire lately! The value of its token, ADA, has gone up by an impressive 52% over the past 30 days.
Although the launch of Djed, the first stablecoin on the Cardano blockchain, hasn’t had a big effect on the price yet, many people are hopeful that it will catch on soon as more and more investors start to invest in it.
Cardano is now the eighth largest cryptocurrency, with a market capitalization of $12.9 billion and a huge trading volume of over $400 billion.
Why Is Cardano Price Approaching Validation Of A Long-Term Uptrend?
Despite hitting resistance at $0.40, the Cardano price is currently trading around $0.374. Over the past three weeks, the token has displayed a significant climb; only this week has there been a decline.
The current market environment, in which all ten of the leading cryptocurrencies are losing money, with the exception of Dogecoin, can be blamed for this drop.
Investors are eagerly awaiting the outcome of the United States Federal Open Market Committee meeting, which is expected to result in a minor interest rate hike.
This is a positive sign for the economy and may encourage investors to put more money into riskier assets like cryptocurrency. Cardano, like other crypto assets, may experience a temporary dip in liquidity ahead of the Fed’s decision.
Assessing the Immediate Earnings Potential of the ADA Coin Price
On the weekly chart, the Moving Average Convergence Divergence (MACD) is showing a buy signal, with the blue MACD line crossing above the red signal line at the start of the year. This indicates a bullish trend for ADA.
Additionally, on the daily chart, Cardano is trading above a multi-month resistance line, which has allowed for the upward momentum from December’s bottom to continue. While there was a minor setback at $0.40, the Money Flow Index (MFI) still indicates that buyers have the upper hand.
If traders can hold onto their positions and wait out any short-term market fluctuations, a breakout could potentially lead to a rise to $0.50 by the end of the week.
To further solidify the bullish trend, traders should look for a clear break and hold above $0.40 and the upper falling trend line. A positive crossover of the 50-day Exponential Moving Average (EMA) and the 100-day EMA in the coming days would also signal a firmer grip on the upward trend.
On the other hand, if the MACD on the daily chart switches to a sell signal, it may indicate a potential decline, with ADA seeking support at $0.30.
Nevertheless, it’s essential to keep the bigger picture in mind and not get too caught up in short-term market movements, as a surge above $1 in the near future is still a possibility.