ADA has been on the downtrend for months since it made an all-time high above $3. After finally bottoming out around $1, Cardano jumps 33% as it has started the upward movement again. It is now trading at $1.58 after the latest price explosion yesterday. The altcoin has also reclaimed the 5th position by market cap a while back. The bulls have come all in, and the price of ADA seems to go up no matter the market direction. At this point, it looks so bullish that if Bitcoin becomes a little positive, we might see $2 by the end of the week.
ADA’s price movement
As you can see in the chart right now, we are at a very critical level. There are multiple resistance at this point, and if we break it, ADA will push much higher. This is a very simple view, but you can see that a few weeks back, ADA faced resistance at 50-day EMA and fell back, but this time it broke through with good volume. Now we are eyeing the 200-day EMA and the trendline, which is already giving some resistance, and the price has fallen from $1.63 to $1.56.
If the bulls can break the resistance here, we are looking at $1.67 as the next stop with the monthly R1 resistance. After this, there is no resistance for a while, and the movement will be towards the 200-day Moving average, which is at $1.83. Staying strong and clearing means we will finally see a $2 ADA after such a long time. Otherwise, there is the possibility of retesting the $1.67 monthly resistance.
Buy the rumor, sell the news?
You might be wondering why there is suddenly a price spike in ADA while the entire market is bearish. This is because Sundaeswap, the first decentralized exchange on the Cardano blockchain, will be launching on January 20th. It is a fully-functional exchange ready for use and will allow projects to create trading pools from today. So, the hype behind this is the reason for the price increase. I hope ADA doesn’t behave the same way it did after the smart contracts launch and the rally continues, but we will definitely see some correction soon.
What are your thoughts as Cardano jumps 33% in 2 weeks before the Sundaeswap launch? And do you think we will see a major correction on the day of the launch? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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