- Cardano price sees a daily close above $0.789, the low of March.
- ADA Price sees bullish squeeze set to pop towards $0.915 before testing $1.00
- Expect to see a gradual increase with the subdued RSI backing any bullish action.
Cardano (ADA) price regained some ground after its rejection against the 55-day Simple Moving Average (SMA) at $0.975 in April. That triggered a 23% downtrend but it looks to be ending as a bullish squeeze with higher lows is set to jump to $1.00, erasing the incurred losses of April. With that move, the 55-day SMA would be breached, signalling a possible end of the downturn since December.
ADA price sees investors coming back, buying the dip
Cardano price did not make it that far low to $0.687, but bulls assessed that ADA price had already devalued enough to start buying into the dip. For the third day in a row, Cardano price is printing higher lows, pushing bears against the low of April 29 at $0.79. With the daily close above $0.789, pressure is mounting and will become intolerable for bears, triggering a sharp move upwards as their stops are run and there is an increased shift to the buy-side.
ADA price will first hit $0.915, a slim historic pivotal level and the monthly pivot level for May. That level will be used as an anchor point going forward before hitting $1.000, and with that, pulling price action up 26% from where ADA price is currently trading. The 55-day SMA will be broken to the upside, which could signal the end of the longer-term downtrend in December of last year.
ADA/USD daily chart
Plenty of tail risks are still overshadowing the cryptocurrency markets, but from a legal corner, dark clouds are forming as well. According to the WallStreet Journal, the SEC announced hiring 20 more investigators and litigators to boost crypto enforcement. If more regulatory crackdowns affect the US market, expect to see interest in cryptocurrencies as an asset class, triggering another drop for Cardano price to $0.687 or even below $0.60 towards the monthly S1 support level.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.