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Despite the Show of Prowess, Cardano (ADA) May Have to Squash This Roadblock to Trend Higher

Cardano

Weeks ago, Cardano (ADA), 11th largest crypto asset witnessed a price jump in the news wake of Cardano co-founder Charles Hoskinson revealing the roadmap for Cardano’s “Shelley” upgrade.

With progress made so far in the Shelley upgrade, Cardano (ADA) has been seen to form an impressively strong market structure in the last few months.

Substantiating this, in a recent interview, Cardano Co-founder Charles Hoskinson discussed the time and effort that has been put into developing Cardano, saying that most of the work needed to launch it has already been done, stating that the products of five years of painstaking work finally come together all at once.

Despite this positivity, ADA has not been able to evade the indecisive market trend Bitcoin set when it remained caught within a consolidation bout around the mid $9000 level.

ADA/USD Daily Chart

Cardano (ADA) has been held within a firm consolidation stint, a trend seen with ring leaders of the crypto market, namely Bitcoin and several other Altcoins.

At the time of writing, Cardano is trading down slightly by around 0.9% at its recent price of $0.0789. Earlier in the prior week, the activity of the bears pushed it down to lows of $0.0690, but largely, it has remained indecisive around the $0.080 level in the last few weeks.

ADA Shows Fundamental Strength As It Approaches Key Resistance, a Bull Run Next?

Progress on the Shelley upgrade attracted much investor hype which seemed to bolster ADA price action in the last few weeks. Asides from this, On-Chain data indicates strong fundamental strength for the crypto asset.

This is seen as IntoTheBlock metrics noted that large ADA transaction volume which refers to transactions above $100,000 has witnessed a surge recently since the beginning of this month. The fact that this spike coincided with an uptrend may seem to indicate that large buyers have been accumulating the crypto asset.


Data Provided via IntoTheBlock

Increases of this magnitude in transaction volume have been seen a few times in the last couple of years. Based on historical antecedents, a surge in large ADA transaction volume has often been associated with massive upside movements.

Analysts are however bullish on the crypto asset with the intent that the underlying fundamental strength it portrays may spur a bull run. This uptrend could turn parabolic if ADA breaches the key resistance level it set since 2019.

In its Bitcoin pairing, Cardano has been seen to amass gains in the last one month which pushed it near a key resistance in the process.

A trader with the moniker “Bagsy” in a recent tweet noted that Cardano may be set for a fresh uptrend as it nears this resistance in which he affirms a bullish support-resistance flip.

Image Credit: IntoTheBlock, Shutterstock

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