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Cardano’s price managed to break the $1 mark with confidence after a period of volatility. This, along with the Mary upgrade, has pushed the price up past the $1.10 mark. So, what should you expect next, and should you invest in ADA now?
Fundamental analysis: Mary upgrade sends ADA above $1.10
Cardano’s overall market outlook has been heavily tilted to the positive lately, especially with the progress the Foundation made towards launching its Goguen (smart contract-enabling) upgrade. On top of that, the Mary upgrade launched on the Cardano mainnet today, causing a slight price increase.
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However, Cardano’s long-term outlook has been potentially compromised as Binance Smart Chain (another competitor to Ethereum) received a lot of attention lately, and even made it to the third spot in the market cap top10 with its native token, BNB coin.
ADA posted week-over-week gains of 22.23%, outperforming both BTC‘s week-over-week loss of 4.43% and ETH‘s 17.52% loss. Cardano is currently the fifth-largest cryptocurrency by market cap, boasting a value of $35.30 billion.
At the time of writing, ADA is trading for $1.113, which represents a price increase of 157.20% when compared to the previous month’s value.
ADA/USD technical analysis: Cardano traders liquidated after a flash crash on Kraken, who is responsible?
Cardano has entered a three-day retracement phase after hitting an all-time high of $1.198. However, the cryptocurrency left this phase after finding support with the 23.6% Fib retracement level of $0.955. With its price increasing by close to 20%, with the daily candle closing above the $1 mark, ADA was ready to end its consolidation and push up.
ADA managed to push its price past the $1.12 level and enter the major resistance area. If it manages to pass this zone, it will reenter the price discovery mode. However, if it fails to do so, its nearest support level is the 21-day EMA, which will soon catch up to the 23.6% Fib retracement level.
It’s also important to note that the large price drop to the $0.156 level was exclusive to the Kraken exchange, and that it happened because of a connectivity exchange. This caused numerous traders to get liquidated, and prices of Ethereum and Cardano to experience a flash crash.
After a brief investigation, Kraken announced that its servers worked just fine, even though they did admit to suffering from connectivity issues.
ADA’s RSI on the daily time-frame has been trending up in the last two days, with its value just entering the overbought territory. Its current value is sitting at 73.44.
Zooming in to the hourly time-frame, we can see that Cardano took the majority of the day to consolidate and trade sideways on slightly descending volume. While its immediate downside is well-protected by the 21-hour and 50-hour EMAs, its first big support level is the 23.6% Fib retracement level of $0.955.