- Cardano price massive rebound from $1 continues to gain traction.
- The improving short-term technical levels could sustain the uptrend to $1.8.
Cardano’s price has ricocheted from the primary support at $1, allowing bulls to take control. The massive freefall extended the breakdown from the all-time high of $2.5, traded in May. However, with robust support behind the bulls, it is only a matter of time before ADA makes it to $1.8.
How sustainable is Cardano price uptrend?
Cardano, as a platform, will soon launch the much-awaited smart contract capability. The upgrade is scheduled for September 2021, an event that seems to keep investor interest high.
Larger platforms like Ethereum and Binance Coin have provided developers with tools to created smart contracts and other financial services, including the decentralized finance (Defi) tokens. However, Ethereum is particularly troubled by high gas fees and scalability issues.
Thus, Cardano’s entrance into the sector is expected to be a game-changer, especially with its cutting-edge blockchain features that have been in development for more than five years. As the launch date approaches, Cardano price is foreseen to spike massively, perhaps surpass the record high and chart the next phase toward $10.
Meanwhile, ADA trades at $1.27 at the time of writing. The recovery has been sharp but consisted, bringing the token closer to the following key barrier around $1.4.
The Moving Average Convergence Divergence (MACD) indicator will likely present a buy signal on the 12-hour chart. Note that this is a chart tool that follows the trend of an asset and measures its momentum.
While the MACD is rarely used to identify overbought and oversold conditions, traders look out for the MACD line (blue) crossing above the signal line to validate the uptrend. On the other hand, a MACD line crossing under the signal line gives a bearish signal. Hence, Cardano’s technical picture may present a buy signal in the near term, adding weight to the uptrend.
ADA/USD 12-hour chart MACD On The Verge Of Buy Signal
The Relative Strength Index (RSI) recovery from the oversold region appears to validate the bulls as they launch an assault on the resistances at $1.4 and $1.8, respectively. A daily close above the 200 Simple Moving Average (SMA) will add credence to the bullish narrative.
What could invalidate Cardano price bullish outlook?
The lift from $1 was quick, but soon bulls ran into the barrier at $1.3. Therefore, this seller’s congestion zone must come out of the way, or the uptrend to $1.4 will be delayed or sabotaged. Similarly, losses back $1 may come into play amid the struggle to bypass the apparent hurdles.
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