Key Cardano Takeaways
- Cardano (ADA/BTC) showed signs of bottoming out after rebounding by up to 32 percent in the ongoing weekly session.
- The pair’s upside moves appeared as Bitcoin prices plunged under macroeconomic pressure.
- More bullish tailwinds for Cardano came from its latest addition to the Coinbase Pro trading platform.
Yerevan (CoinChapter.com) — Cardano flexed its muscles to the Bitcoin bulls after going through weeks of beating from the world’s leading cryptocurrency by market capitalization.
The blockchain platform’s native token, ADA, surged by up to 32 percent after bottoming out near 1,745 satoshis earlier this week. At its week-to-day high, the ADA/BTC exchange rate logged a sessional high of 2,326 satoshis. Meanwhile, an absence of profit-taking sentiment near the local peak pointed at the possibility of an extended uptrend.
Cardano’s latest rally appeared mostly in part when its top rival Bitcoin underperformed. In retrospect, the benchmark cryptocurrency came under a renewed downside pressure after establishing an all-time high above $61,000, almost twice as expensive compared to the year’s opening rate.
Bitcoin largely responded to events unfolding in traditional finance. The cryptocurrency declined as the yield on the US 10-year Treasury note surged to its highest level in more than a year. That increased the US dollar’s appeal among investors, with the greenback’s benchmark index surging higher this week. Bitcoin typically trades inversely to the dollar.
Traders within the cryptocurrency space decided to flock into the Cardano market on its short-term upside catalysts. First, US-based exchange Coinbase announced that it is listing the ADA token on its trading platform. Meanwhile, the ongoing craze around the non-fungible tokens (NFT) made ADA look attractive to traders with short-term risk appetite.
Earlier this month, Cardano upgraded its blockchain with the “Mary” update. It paved the way for blockchain users to create their unique tokens. These digital files have become a new phenomenon, allowing creators to transfer the ownership of arts online for cryptocurrencies. That partially explains why traders opted to park their capital in ADA as Bitcoin stagnated.
ADA’s latest upside move has brought it inside a trading range defined by 2,334 satoshi as interim resistance and 2,107 as interim support.
The token expects to consolidate inside the range, thereby proving bears the opportunity to short ADA/BTC on a pullback from the resistance to target the support. Conversely, a rebound from the support could have traders open a long position towards the resistance.
A bullish breakout above 2,334 satoshi could have traders extend their upside target to 2,561 satoshi. The same level also coincides with the rising trendline slope that earlier provided support to the ADA’s downtrend but flipped later to act as resistance. A break above the resistance trendline could confirm a medium-term bullish bias for Cardano against Bitcoin.
Meanwhile, a negative breakout below 2,107 could have ADA test the 20-4H and 50-4H moving average waves as interim downside target. A further breakdown could land the token inside the primary support range below.