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Cardano's native cryptocurrency ADA is at a critical price level that could determine the next major move as the blockchain project forges ahead with key partnerships to support its growing ecosystem.
The ADA token is currently trading at $0.4575, up 3.50% over the past 24 hours and 3% higher in the last 7 days. With a circulating supply of around 35.6 billion ADA, Cardano has a market cap of over $16.3 billion, ranking it as the 10th largest crypto asset.
In the last 24 hours, ADA's trading volume has surged over 72% to over $516 million, accounting for a healthy 3.18% of its market cap. This strengthened activity comes amid an announcement from Cardano's development company, EMURGO, regarding a strategic relationship with GSR, a leading crypto market maker licensed by the Monetary Authority of Singapore.
The collaboration with GSR aims to provide deeper liquidity for the Cardano ecosystem while also fostering educational initiatives and identifying opportunities for projects building on the Cardano blockchain.
On the weekly chart, ADA has been trapped in a bearish trend since mid-March, when it faced a second rejection at around $0.81 after failing to break through that resistance level. Most weekly candlesticks have closed bearishly, indicating selling pressure.
However, ADA has found support at the $0.44 zone since first testing it on April 13th, marking a low of 0.4244. Last week's candlestick formed a long-legged doji, a potential bullish reversal pattern. At the same time, the weekly RSI sits at 44, hinting at more room for downside. If the bullish run is to lick in at the current market price, then a test to the recent high of $0.81 would account for a 77% price surge.
Zooming in to the daily timeframe, ADA is currently retesting the $0.4450 support zone for the second time after being rejected there first time in mid-April (13th April). The price has been consolidating around $0.43 and $0.47 since April 25th without much volatility.
The daily RSI of 41 is gaining momentum after hitting oversold territory in April, adding confluence to the possibility of a bullish reversal. A breakout above the $0.47 resistance would confirm a shift to an uptrend in the lower time frame, with targets at recent highs around $0.52, the fair value gap above $0.52, and potentially the double resistance at the $0.62 level.
On the 4-hour chart, ADA is range-bound, awaiting a breakout above $0.4749 for buying confirmation or a breakdown below $0.44 to continue the bearish pressure.
Renowned crypto analyst Ali Martinez believes the next bull run for ADA is "just gearing up," suggesting the recent correction could be "one of the last buy-the-dip opportunities." Martinez notes similarities between ADA's current price action and its behavior four years ago before a significant rally.
Other analysts have set ambitious targets for ADA, with some predicting the token could reach $10 in the future bull market cycle.
As Cardano continues expanding its ecosystem and liquidity, the ADA token finds itself at a crucial technical juncture. The coming days and weeks will reveal whether the bulls can overcome the $0.47 and the $0.52 resistance hurdles and kickstart a new uptrend or if bears will maintain control, pushing ADA lower to retest previous support levels.
Other analysts have set ambitious targets for ADA, with some predicting the token could reach $10 in the future bull market cycle.
As Cardano continues expanding its ecosystem and liquidity, the ADA token finds itself at a crucial technical juncture. The coming days and weeks will reveal whether the bulls can overcome the $0.47 and the $0.52 resistance hurdles and kickstart a new uptrend or if bears will maintain control, pushing ADA lower to retest previous support levels.
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