Yerevan (CoinChapter.com) — ADA, the native cryptocurrency of the blockchain protocol Cardano, has the potential to rise by approximately 10% in the coming sessions, technical indicators suggest.
Cardano’s native token ADA is trading within a technical pattern known as a parallel sideways channel. The upper line of the channel is the resistance line. It keeps the price from a bullish breakout, while the lower support line prevents the token from further devaluation. ADA remains in a bias conflict as its price fluctuates within the said range since late February 2021.
However, the token is consistently trading above the 20-day Exponential Moving Average(EMA-20). A blue line indicates the EMA-20 on the chart below. The uptrend of the EMA-20 line suggests a bullish future for ADA in the upcoming days. If the trend continues, it will place the price of ADA on the crossing between the vertical line and the resistance line at approximately $1.57. The possible bullish sentiment gives Cardano’s price a 20% boost.
Technical Analysts Are Optimistic
Independent market analyst Michael van de Poppe has also predicted bullish outcomes for ADA in the upcoming sessions. The Amsterdam-based stock and crypto expert highlighted critical support levels on the ADA chart against Bitcoin that maintained its short-term bullish bias. The analyst believes that Cardano “will be fine” as long as ADA price manages to stay above the indicated support areas.
In a later tweet, the technical analyst also stated that Cardano is in a “healthy correction”. He advised investors and traders to be patient, hinting that he has an optimistic outlook on the future of the token.
Other Factors Affecting Cardano
As reported by CoinDesk on April 30, Cardano’s Ethiopia blockchain deal is coming up. It has the potential to further boost ADA’s bullish sentiment. Late last week, Cardano also announced it has partnered with the Ethiopian government.
In retrospect, Ethiopia’s population lives in predominantly rural areas, with only 15 percent having regular access to the internet. Cardano proposes to remedy the harsh economic conditions by creating a blockchain-based system to track student performance in local schools.
Blockchain’s founder Charles Hoskinson has been vocal about “bridging the gap” between the technologically advanced world and the countries that are devoid of that privilege due to economic and political factors. He claims that Ethiopia is only one of the target regions Cardano plans to partner with.
The Twitterverse also responded to Cardano’s plans on Africa, making optimistic predictions
Should the technical analysis be correct, Cardano will see a 20 percent increase in price, while still trading within the parallel sideways channel. If the price does not adopt the bullish sentiment, it will possibly drop to the support line level, and bounce back.
Cardano’s activity in the developing countries of Africa is also likely to play a role in the token’s price and boost it in an upward trend.