Goris (CoinChapter.com) — The battle between Cardano bulls and bears rage on as the blockchain project’s native token, ADA, covers a combined trend trajectory of around 100 percent in the first sixteen hours of the ongoing Wednesday session.
The ADA/USD exchange rate slipped by almost 48 percent after opening at $2 in a havoc-like situation across the entire cryptocurrency sector. Tokens crashed en masse after Bitcoin, the world’s leading digital asset by market cap, fell to $30,000 following a 30 percent intraday decline. ADA also came under the bearish storm as a result.
But then something incredible happened. Bulls started flocking across the Bitcoin and altcoin markets to buy the dip. They not only defended the local bottom from metamorphosing into something sinisterly bearish but kept buying the defeated tokens at their local higher highs, confirming that they did not agree with the crash at all.
ADA surged by more than 60 percent in the midday New York trading after bottoming out at $1.05. As of 1630, the Cardano token had established a post-noon top of $1.71 and was now eyeing a close above $1.81, a short-term resistance level.
Which Way for Cardano Next?
There is nothing sure about which way the crypto market would turn. That also puts ADA at risk of attaching itself too much with the bearish pack, even though, as a native asset of a prominent blockchain project, its long-term bias looks promisingly bullish. For instance, on the daily chart‚ for instance, the ADA/USD exchange rate clutches above a flipped support line of its previous trading channel range.
The pair appears to have found its bullish bias above the said price floor.
Inflation concerns, which have weighed hugely on bond and stock markets in the US, have also contributed to the decline of Bitcoin and, in turn, altcoins like Cardano. That has somewhat put doubts on bulls’ ability to hold the said technical support. Nonetheless, ADA/USD’s intraday action speaks a lot of their conviction in at least holding prices in attractive trading range.
That said, the pair could slip back inside its previous consolidation range as the weekly session nears its close. Best case, it could keep on fluctuating inside the area until further confirmation — a bias conflict. Worst, it hits the 200-day moving average as its primary downside target.