Native to the smart contracts platform, Cardano (ADA), has been a buzz in crypto circles this week. Citing important technical indicators and a change in market attitude, analysts like Sssebi foresee a possible bull run for ADA based on the price and trading activity spike.
Breaking Through Resistance, Bouncing Back Stronger
Respected crypto expert Sssebi just sent a thorough analysis stressing ADA’s recent positive actions. On the 4-hour chart, the token’s successful ascent above the critical 200-day moving average (200MA) is one of the main causes Sssebi notes.
Widely utilised technical indicator reflecting long-term trend of an asset is the 200MA. A price rising above the 200MA is historically considered as a positive indication of a possible change from a downtrend to an uptrend.
$ADA gets a nice bounce of the 200MA on the 4hr chart with increased volume! Bullish!
Since it hit 0.80$ $ADA was not able to get above this moving average and now it has broken it, came back and retested and bounced with high volume!
Insanely bullish on $ADA right now! https://t.co/YCcGY13ZSp pic.twitter.com/QyatkiCx4k— Sssebi🦁 (@Av_Sebastian) May 21, 2024
Still, Sssebi’s study transcends the first breakout. He stresses the need of the retest and the following rebound back from the 200MA considering heavy trade volume. Sssebi says this price behaviour points to a strong buying power underlying ADA.
The previous resistance level, once a hurdle for further gains, may now act as a strong support floor, preventing sharp price drops.
Volume Surge Fuels Optimism
The notable surge in trading activity preceding ADA’s recent price increase adds still another important component to Sssebi’s optimistic view. One of the most important markers of investor attitude and market interest is trading volume.
High volume points to more market players actively purchasing and selling ADA, hence supporting the price movement. Regarding ADA, the great volume spike along with the recovery off the 200MA confirms Sssebi’s conviction about a possible rally.
The crypto community has found resonance in the analyst’s observations since many traders and investors monitor Cardano’s advancements closely. Based mostly on technical indications and recent market action, Sssebi’s optimistic assessment points to ADA’s potential for much more price increase.
Still, the Sssebi piece emphasises the need of doing independent study before deciding what to invest in.
Cardano: Fundamentals And Ecosystem Growth
Sssebi’s study presents a good technical picture for ADA, but the future course of the coin will probably rely on more general elements. Input Output Global (IOG), Cardano’s development team, has been assiduously scaling solutions and broadening the possibilities of the platform.
A major turning point was reached last year with the successful introduction of smart contracts; the community is much anticipating future innovations like the Vasil Hard Fork, meant to increase network scalability and transaction fees.
Featured image from Bisnar Chase, chart from TradingView