Cardano Breaks Past 200MA, Analyst ‘Insanely’ Bullish on ADA
May 22 2024 - 4:50AM
NEWSBTC
Cardano (ADA), the native token of the smart contracts platform,
has been a hot topic in crypto circles this week. The surge in
price and trading activity has analysts like Sssebi predicting a
potential bull run for ADA, citing key technical indicators and a
shift in market sentiment. Related Reading: Solana Leaves
Competition In The Dust: Blazing Speed To Fuel Price Surge?
Breaking Through Resistance, Bouncing Back Stronger Sssebi, a
well-respected crypto analyst, recently published a detailed report
highlighting ADA’s recent bullish behavior. One of the key factors
Sssebi points to is the token’s successful climb above the crucial
200-day moving average (200MA) on the 4-hour chart. The 200MA is a
widely used technical indicator that reflects the long-term trend
of an asset. Traditionally, a price moving above the 200MA is seen
as a bullish signal, suggesting a potential shift from a downtrend
to an uptrend. $ADA gets a nice bounce of the 200MA on the 4hr
chart with increased volume! Bullish! Since it hit 0.80$ $ADA was
not able to get above this moving average and now it has broken it,
came back and retested and bounced with high volume! Insanely
bullish on $ADA right now! https://t.co/YCcGY13ZSp
pic.twitter.com/QyatkiCx4k — Sssebi🦁 (@Av_Sebastian) May 21, 2024
But Sssebi’s analysis goes beyond the initial breakout. He
emphasizes the significance of the retest and subsequent bounce
back from the 200MA with high trading volume. This price action,
according to Sssebi, suggests a robust buying force behind ADA. The
previous resistance level, once a hurdle for further gains, may now
act as a strong support floor, preventing sharp price drops. Volume
Surge Fuels Optimism Another key element in Sssebi’s bullish
outlook is the significant increase in trading volume accompanying
ADA’s recent price rise. Trading volume is a crucial indicator of
market interest and investor sentiment. High volume suggests a
larger number of market participants are actively involved in
buying and selling ADA, lending credence to the price movement. In
the case of ADA, the high volume surge alongside the bounce off the
200MA strengthens Sssebi’s belief in a potential uptrend. The
analyst’s insights have resonated with the crypto community, with
many traders and investors keeping a close eye on Cardano’s
developments. Sssebi’s bullish view is primarily based on technical
indicators and recent market activity, suggesting the possibility
of further price appreciation for ADA. However, the article
published by Sssebi also underscores the importance of conducting
independent research before making any investment decisions.
Related Reading: XRP: Social Buzz Points To $0.70, But Technicals
Predict Dip To $0.50 First Cardano: Fundamentals And Ecosystem
Growth While Sssebi’s analysis paints a promising technical picture
for ADA, the cryptocurrency’s future trajectory will likely depend
on a broader set of factors. Cardano’s development team, Input
Output Global (IOG), has been diligently working on scaling
solutions and expanding the platform’s capabilities. The successful
launch of smart contracts last year marked a significant milestone,
and upcoming developments like the Vasil Hard Fork, aimed at
improving network scalability and transaction fees, are eagerly
awaited by the community. Featured image from Bisnar Chase, chart
from TradingView
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