Over the last 24 hours, Cardano price has rallied to be one of the best performers across large cap digital assets. As we enter a new week, what technicals will traders be watching in Cardano ( ADA ), and why could the cryptocurrency see +16.5% upside from current levels?
As we enter a new week for crypto markets, Cardano is showing the most momentum, experiencing +5% growth over the last 24 hours. At the time of this reporting, Cardano ( ADA ) price is hovering around $0.10340. Cardano is currently ranked the 9th largest cryptocurrencies by market capitalization. With ADA outperforming most large cap alts the last 24 hours, it is expected that ADA will experience elevated volume to start the week. Here is how ADA stacks up against large cap digital assets the last 24 hours:
- Cardano: +5%
- Bitcoin: +0.90%
- Ethereum: -0.70%
- XRP: -0.20%
- Chainlink: +3.2%
- Litecoin: +0.50%
- EOS: +0.10%
Cardano ( ADA ) Technical Analysis
Since September 24th, ADA has experienced strong upward momentum. This was initiated by a double bottom that we can see outlined in the chart below. Based on current technicals, ADA could very well see +16.5% additional upside from current levels. Despite the sell-off that took place in July after yearly highs were put in, Cardano price has still rallied +164% over the last year.
As discussed above, +16.5% upside from current levels looks pretty favorable right now. The current rally has sent Cardano price above the $0.096 resistance level that it has not penetrated since the bull run in early July. ADA price looks to be following similar price action, in which it tested $0.12 resistance. If Cardano price were to test $0.12 resistance, that would be about +16.5% upside from current levels.
One technical that traders will be watching this week is that 50 day moving average outlined on the chart above. ADA price has not traded above the 50 day moving average since August. Based on historical price action, trading back above that level could be a momentum driver. In addition, Cardano price is getting the MACD crossover right now which is another bullish indicator.
If we look at the bull run in July, ADA had a similar MACD crossover. The bull run in May also experienced the MACD crossover. Even though ADA is outperforming Bitcoin as of recent, a bull run by Bitcoin this week could add even more fuel to this setup.
On the flip side, if ADA fails to hold the $0.096 support level, the bull run could be put on hold until that position is reconfirmed.
Cardano ( ADA ) Fundamentals
On the fundamental side of things, Cardano price seems to be reacting to an interview last week, in which the creator of Cardano, Charles Hoskinson, talked about plans to leverage ADA cryptocurrency to create a financial operating system. This proposed system would provide users ” full-fledged economic identities.”