Cardano (ADA) – Technical Data Shows Potential Buy Signal
Cardano (ADA) was changing hands higher in the early trading session on Monday, as traders crowded behind the token over its optimistic fundamentals.
The Cardano blockchain project’s asset increased by 3.3 percent to 970 sats as of 10:25 GMT. The surges came after an active upside move that began on September 24th, and since then, the ADA/BTC exchange rate had risen by 32 percent, attaining an intraday high at 982 sats.
ADA/BTC is testing its 50-day moving average as resistance. [Image Source: TradingView.com]
ADA’s increase in price followed a broader upside correction for the top cryptocurrencies. Still, the token outstripped numerous other tokens by posting better profits as traders expected the launch of Goguen, a Cardano development that’s predicted to appeal to Ethereum-based developers.
The ‘Ethereum Killer’
Cardano’s creator Charles Hoskinson has announced more details regarding Goguen in an AMA on Sunday. He said that the project would make Cardano a multi-asset system, which will enable users to develop personalized tokens.
Goguen will also feature an ERC20 token converter, which will make it possible for companies to move from the Ethereum blockchain to Cardano.
Surprise AMA 09/26/2020 https://t.co/pOCa2qJlDh
— Charles Hoskinson (@IOHK_Charles) September 27, 2020
In the meantime, crypto exchange Bittrex completed its incorporation of the ADA wallet together with Shelley, a hard fork that made Cardano network a Proof-of-Stake project. This was also one of the main stimuli that pushed ADA prices to its two-year highs back in July of this year.
ADA – Technical Outlook
Market analyst Nico, who observed ADA turning its 200-day moving average resistance into support on Sunday, referred to the upside move as a ‘potential buy signal.’
ADA/BTC Technical Outlook as presented by Nico. [Image Source: TradingView]
“Potential buy signal on the 1D chart as it [is] trying to flip ~880 sats into support (Matching EMA200 on the 1D),” wrote Nico. “If [it] gets confirmed on candle close – and volume starts flowing in, then we may see some recovery toward previous High levels.”
The term ‘previous highs,’ used by experts refers to the levels the coin had earlier tested as resistances. A deeper glance into the ADA/BTC chart showed the price highs in this order: 1,015 sats, 1,102 sats, 1,229 sats, 1,389 sats, 1,545 sats, and 1,682 sats.
Another analyst, Stefan Bode, also noted ADA’s recent attempts to close above its 50-day moving average.
“Once Cardano’s phase of weakness against Bitcoin is over, a phase of strength should follow. Today’s closing above the EMA50 should confirm its strength. Then a bull run could run towards new highs,” he said.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.