YEREVAN (CoinChapter.com) – ADA, the native token of the seventh-largest cryptocurrency Cardano, saw 20% intraday gains, the highest soar in the top 10 cryptos. The ADA/USD exchange rate climbed to $0.57 in the European session Friday, albeit flashing conflicting technicals on the charts.
Cardano (ADA) gains big.
The digital asset caught the ubiquitous Bitcoin (BTC)-led recovery wave after bottoming out at $0.4 on May 12. Additionally, ADA sought support from a former resistance trendline, which could solidify the bullish claim.
However, the broader market conditions, the Fed’s quantitative tightening policy, and the continuous war in Ukraine could put a damper on Bitcoin bulls’ aspirations. As a result, ADA could join the march and decline alongside other leading cryptos if the bearish scenario plays out.
ADA in a dead cat bounce?
Furthermore, during the previous week’s crash, the trading volumes were building up a strong panic-sell wave, and the green bar on May 13 was far less substantial. Thus, it might not suffice to overpower the sell-off incentive, taking the Cardano token’s value down.
Moreover, the recent upside move was insufficient to convince the trend-based indicators. The MACD histogram printed red bars, while the relative strength index (RSI) bobbed around the ‘low expectation’ territory.
A crypto analyst with a Twitter handle, CryptoCapo agreed with the ‘dead cat bounce’ prediction, tweeting an update on his May 9 prediction. The analyst’s chart forecasted a drop to the $0.3 support as ADA’s next move.
CryptoCapo also offered a “counter scenario” in the comments, asserting that a “reclaim of the 0.80 level on a high timeframe would be one of the invalidations” for the bearish prediction.
Michael Van de Poppe, the chief executive of consulting firm Eight Global, agreed with the mentioned price target. Notably, he asserted that “the next support around $0.38-0.40 is the one the markets bounced from.”
Well, $ADA didn't hold at $0.68 and is currently down 87%.
The next support around $0.38-0.40 is the one the markets bounced from.
Solid predictions are hard to make based on ADA charts alone. Like any other cryptocurrency in the turbulent market, Cardano depends on more prominent players like Bitcoin, the U.S. dollar, the inflation statistics, etc. Thus, it is crucial to watch the crypto segment as a whole, and the broader economic conditions, to better determine the most profitable market entry and exit points.
Lilit is a Yerevan-based Markets writer, skilled in 3 languages, and interested in writing about the tech world, trading, art, and science. She also has a background in psychology and marketing, which helps deliver the right message to the target audience.
YEREVAN (CoinChapter.com) – The CryptoG Group CTGX crypto or token was the new talk of the town, and announced...
Our Partners
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.