From a lowly $0.17 on 1st January, Cardano has taken an authoritative charge in the market, rallying by more than 100% over the course of the past 3 weeks. Currently valued at $0.360 on the charts, Cardano had a market cap of $11.18 billion sitting tightly at 6th in the market.
Cardano 6-hour chart
Source: ADA/USD on Trading View
Although Cardano’s price is currently on the rise in the charts, the asset is oscillating between the trend lines of an ascending channel. However, ADA still seems far away from a bearish breakout but the possibility of such a turnaround will depend on its consolidation above the average line. Currently, ADA is right above its immediate support at $0.354. In order to re-test its ATH range at $0.398, Cardano will need to move above the average line in the pattern.
Likewise, an equal probability remains that ADA drops down to support at $0.334 before exhibiting another leg-up from the underlying 50-moving average. If Cardano tumbles below the 50-MA over the next couple of weeks, the asset will re-test support at $0.306.
Market Rationale
Source: ADA/USD on Trading View
Market Indicators were inclining towards a bullish narrative at press time. Awesome Oscillator or AO is suggestive of a bullish recovery after appearing neutral at the moment. The MACD exhibited a bullish crossover after the MACD line hovered over the signal line in the charts.
Lastly, the Relative Strength Index or RSI displayed equal buying and selling pressure. However, considering RSI appeared on the rise, buying pressure may take charge in the coming weeks.
Conclusion
To be fair, Cardano is still relatively neutral at press time as a correction might be inevitable in the future. Howevcr, the bullish momentum may die down once the collective crypto market heads south.
