- A critical long-term resistance created by SMA50 weekly is within reach
- Cardano enjoys a steady flow of positive fundamental news.
Cardano (ADA) is one of the best performing coins of the week. ADA/USD gained over 22% in the recent seven daysand over 60% since the beginning of the year amid global recovery on the cryptocurrency market supported by a slew of positive fundamentals.
At the time of writing, ADA/USD is changing hands at $0.0555 from $0.439 at the beginning of the week. According to intotheblock data, only 43% of Cardano holders are in the money at a current price, though the market sentiments are predominantly bullish.
Cardano partners PwC
Cardano’s partnership with PricewaterhouseCoopers (PwC), one of the world’s largest auditing companies, might have served as a bullish catalyst for ADA. The deal was announced by Charles Hoskinson, the CEO of IOHK, the company behind Cardano development. While the details of the partnership are not disclosed at this stage, Hoskinson promised that the company would soon reveal a rebranding strategy that would turn Cardano into a recognized commercial product.
Cardano Price Analysis: ADA/USD bulls set their eyes on SMA50 weekly
ADA/USD: technical picture
The initial support is created by $0.0529, which is the upper boundary of the daily Bollinger Band. If history is any guide, the price is likely to return inside the Bollinger Band from the overbought levels. The next strong support comes at $0.0438 where SMA200 daily meets the middle line of the above-said Bollinger Band. Once this area is cleared the sell-off may gather pace and take the price towards $0.0381 (SMA50 daily). This area is likely to slow down the bears and serve as a jumping-off ground for a recovery.
On the upside, the price stopped within a whisker of SMA50 weekly at $0.0562. We will need to see a sustainable recovery above this area to improve the long-term technical picture. Once it happens, $0.06 will come into focus.
ADA/UDS daily chart