ADA at crucial resistance as Milkomeda C1 launched on Cardano

Key Takeaways:

  • Cardano (ADA) reached a critical resistance level on Mar. 29.
  • However, the token could retrace based on several technical indicators
  • Milkomeda EVM launched on Cardano
image from medium.com
image from medium.com

YEREVAN(CoinChapter.com) – ADA, the in-house token of smart contract platform Cardano, reached $1.2 in value on Mar. 29, after a week of incremental upside advances, adding up to 30%. While ADA paired most of its losses in Q1 2022, the token arrived at a crucial resistance that could hinder its bullish claims.

Cardano (ADA) price action on Mar. 29. Source: CoinMarketCap.com
Cardano (ADA) price action on Mar. 29. Source: CoinMarketCap.com

In detail, the $1.2 support-turned-resistance has been instrumental since Feb. 2021, and the latest retest occurred in early Feb. 2022. If Cardano’s token breaks the said resistance, it could continue the rally to $1.6.

Moreover, ADA/USD price action registered a Golden Cross between the 20-day exponential moving average (EMA-20) and the EMA-50. In hindsight, the formation signifies a bullish phase ahead as long as the short-term MA maintains the dominant position. But several technicals point in the bearish direction.

Bearish outlook for ADA after all?

For example, despite the price advance, the trading volumes have been declining for a week, suggesting insufficient buying pressure from ADA bulls. Additionally, the Moving Average Convergence Divergence (MACD; green/red histogram) hinted at a looming downtrend.

Cardano (ADA) daily price chart. Source: TradingView.com
Cardano (ADA) daily price chart. Source: TradingView.com

In technical analysis, the MACD indicator is primarily a trend-based momentum indicator. It shows the relationship between two moving averages of an asset’s price. Additionally, daytraders use MACD to spot direction changes in prices. The indicator helps form decisions regarding entering, adding to, or exiting existing positions.

Also read: Cardano rises 28% this week as ADA’s richest investors resume accumulation spree.

On the chart above, the MACD showed a weakening in the bullish bias, which could possibly lead to a retracement, paired with the firm resistance at $1.2.

However, fundamental news favor Cardano, as its ecosystem grew with another project. The latter was dubbed Milkomeda, the collision product between the Andromeda galaxy and the Milky Way.

Milkomeda C1 launched on mainnet

According to the announcement on Mar. 28, Milkomeda C1 is an EVMenables Ethereum dApps to be deployed in the Cardano ecosystem. Moreover, the layer-1 protocol signified the importance of Milkomeda, calling the moment “pivotal” for Cardano.

This marks a pivotal moment, wherein a lot of the most battle-tested and audited smart contracts in the crypto space are now unlocked for Cardano users to take advantage of.

read the announcement.

Also read: ADA jumps 7% after Cardano increases smart contracts’ script memory.

Additionally, Milkomeda specified that the project entails several dApps. Few of the most prominent are the MilkySwap DEX, OccamX, an automated market maker (AMM), and the interoperability protocol Nomad.

close
ADA, ADA at crucial resistance as Milkomeda C1 launched on Cardano

Subscribe Today
for our Weekly Newsletter

Free Weekly Crypto News without the spam.

Related Articles

Our Partners

SwapCoin.com RapidCoin.com ChangeNOW.com Paybis.com