Cardano (ADA) Consolidating Between $2 and $3, Before Resuming the Bullish Trend Again
Crypto market sentiment keeping Cardano (ADA) subdued, after the Alonzo upgrade
Cardano turned quite bullish in August, as the crypto market moved higher after a bearish period. ADA/USD suffered some massive losses in May, but it formed a support zone just above $1 and turned more bullish than the major cryptocurrencies in August, gaining around 300% until September.
Cardano finally broke above the $3 level, which had been the target for quite some time. But the price retreated after reaching that target, which seemed like some profit-taking after the strong rally, from buyers who had gone long before the bullish move. Then the flash crash in the crypto market came last Tuesday. However, the 50 SMA stopped the decline at $2.04, and ADA/USD bounced off that moving average on the daily chart.
Cardano ADA H4 Chart
Cardano bouncing between 2 MAs on the H4 chart
The 20 SMA (gray) turned into resistance at the top, and today we are seeing a retreat after the rejection in the last two days. But this is not Cardano’s fault; today’s decline can be attributed to the whole crypto market, which is under some selling pressure, because the fundamentals are positive for Cardano.
Cardano Alonzo Upgrade
After the Alonzo upgrade, which took place over the weekend, Cardano has added the option of smart contracts to its platform now. The new upgrade will allow the Cardano blockchain to support non-fungible tokens, and decentralized exchanges, as well as running oracle programs that accept external data, to trigger smart contracts. Now, Cardano has become real competition for ETHEREUM, which was its goal from the beginning.
So, the new Alonzo hard form has rolled out just fine, and programmers are running to this network, which has increased the demand for ADA tokens. ADAlend.finance, which is a native protocol Cardano that brings decentralized lending to the network, sold out in one hour, and there was 400% oversubscription, confirming the great interest in Cardano.
Cardano ADA Live Chart
However, for the time being, Cardano is bouncing between the 20 SMA at the top, and the 50 SMA at the bottom, so it remains stuck. The breakout is expected to be to the upside, but we will follow the crypto market closely, because we might get a surprise that drags Cardano down. If not, we might go long on Cardano, probably close to the 50 SMA.
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