Crypto News– ADA’s price is on the ascent after touching its lowest point since June at $0.23. The smart contract token, boasting an $8.8 billion market capitalization, surged 2.5% on Friday to reach $0.2527, joining a broader bullish trend that is keeping the overall cryptocurrency market slightly in the green.
Cardano ADA Defies Low Cryptocurrency Volatility with a Surging Price – Could a Massive Rally Be on the Way?
The prevailing bullish sentiment persists despite concerns raised by the US Consumer Price Index (CPI) earlier in the week, indicating ongoing inflation worries. Following the rebound from the $0.23 support level, which coincided with the middle boundary of a descending channel, Cardano’s price bulls are now engaged in a battle to overcome resistance at the upper boundary, aiming to achieve gains beyond $0.26.
The optimistic outlook presented by the Moving Average Convergence Divergence (MACD) indicator suggests a promising trajectory for ADA’s price. If market sentiment remains positive, a rally toward $1 appears to be the most likely scenario.
Traders are likely gaining confidence in this new uptrend as the blue MACD line crosses above the signal line, while the momentum indicator is generally moving closer to the mean line. Those considering long positions in ADA may prefer to wait until resistance within the descending channel has weakened. This cautious approach helps avoid potential bull traps and allows for profit-taking, starting around the $0.26 level.
However, it’s worth noting that due to low liquidity resulting in reduced trading volumes, the anticipated significant breakout to $1 may take a bit longer to materialize.