The cryptocurrency market is back with a frenzy after casualties from recent price corrections slowly melt away. The lead cryptocurrency Bitcoin (BTC) is back beyond $40k as Cardano’s native currency ADA hits levels not seen in 3 years. ADA/USD effectively broke the $0.5 mark on Feb. 5, poised for increased bid as crypto inventories pick up the pace. Amidst its massive pump, Cardano’s unstoppable volatility takes ADA/USD to a $0.5680 high. With this upsurge, Cardano (ADA) is the sixth most valued cryptocurrency ever in terms of current market capitalization at $16.88 billion and a total of $6.63 billion in trade volume over the past 24hrs. ADA/USD recent low was registered during March 2020 carnage at $0.0185 and since then it has been in an extremely rapid upward movement towards its all-time high of $1.15, reached on Jan. 4, 2018. At the current trading price of $0.5416, ADA requires an increase of 200% to reach a new all-time high price. In a mission to further distance itself from the actual running of the Cardano blockchain and to introduce a fairer and more community-oriented delegation approach, private stake pools get 3.2M delegated ADA from IOHK’s public pool.
*ADA/USD effectively broke the $0.5 mark on Feb. 5, poised for increased bid as crypto inventories picks up pace
*Amidst its massive pump, Cardano’s unstoppable volatility takes ADA/USD to $0.5680 high
*Private stake pools get 3.2M delegated ADA from IOHK’s public pool
Key Levels
Resistance Levels: $0.8000, $0.7700, $0.6000
Support Levels: $0.4569, $0.3000, $0.1834
ADA/USD Daily ChartAs seen on the daily chart, Cardano (ADA) has been witnessing its price rise almost throughout January into February 2021. However, there exists upside resistance zones that may limit the ascent of ADA/USD beyond the $0.60 threshold. A breakout beyond this zone will target the $0.70 price range as the relative strength index is yet overbought.
In a scenario of a price correction, ADA/USD may exhibit weak support before getting to the MA 50 around the $0.4-$0.5 price range. Therefore losing this zone can easily push Cardano price down to $0.30 at the MA 50. But it does not invalidate the entire uptrend due to the expected support at the long-term moving averages.
ADA/USD 4-Hour ChartAs the Cardano market rallied forward it may witness a rise in the selling pressure to stabilize its price. The shorter time frame may present a mild sell signal for ADA/USD price as the digital asset is overextended. The upside resistance levels of $0.5680 and $0.60 may likely cause rejections once ADA reaches them, at least in the short-term.
As such, the inspiring aggression of buyers may dwindle and activate a larger correction to the $0.45 to $0.30 where buy limit orders may be filled at the dip. The asset is currently at the overbought zone on the 4 hour time frame and it may drop to the $0.41 short-term MA 50 zone, where short traders can take profit. The ADA/USD pair stays bullish while trading above the $0.45 level.
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