Cardano was being traded at $0.077; the 10th-largest cryptocurrency by market cap, ADA has posted an impressive rally. Thanks to the upcoming Shelley mainnet migration, there is an overall bullish sentiment among investors of the Cardano ecosystem.
Cardano 1-Day Chart:
Source: ADA/USD on TradingView
Cardano breached a crucial point of $0.0768 on the 30th of May. Notably, this level was last breached almost a year ago. Since achieving this milestone, this level appeared to have supported ADA’s price action from dropping further below which was evident with the recent price action when most of the altcoins, following Bitcoin’s downturn, sustained losses.
The placement of the daily moving averages was also one of the biggest indicators of a bullish phase. All DMAs were below the price candles forming significant supports for the coin. 50 DMA [Pink] underwent a golden cross with 200 DMA [Purple] in the third week of May and a bullish crossover with 100 DMA [Blue] soon after. The gauge, since then, has been on the rise depicting a bullish trend for the coin. In addition, 100 DMA also underwent a bullish crossover with the 200 DMA around the same time.
ADA currently underwent a pullback, and if this trend persists, the coin could potentially drop to $0.070, a level that was its previous peak but now acting as a support. Furthermore, ADA’s price found support from 50 DMA which could prevent its price from a further downturn.
In addition, RSI has also mimicked ADA’s price action, after climbing above 50-median neutral zone since the crash in March. The recent dip drove RSI to fall, however, it has able to retain its position above the 50-mark, which has acted as crucial support as it resisted the coin from falling any further over the past couple of weeks.
At the time of writing, correlation coefficient stood at 0.85. If Bitcoin surges in the near-term, it could further boost ADA to post bullish figures in the long-term. In case of a bullish break, ADA could potentially surge all the way to $0.887. While the coin was firmly supported by the three moving averages at levels $0.0615, $0.0472, and $0.046, respectively.