Yerevan (CoinChapter.com) – ADA, the native token of Cardano, gained 20 percent over Saturday and traded at $1.68 in the European session Sunday.
Cardano, unlike the rest of the crypto market, has experienced gains since May 13. The day when all hell broke loose and Bitcoin began to plummet. Moreover, it hit an all-time high of $2.46 on May 16.
Despite facing its share of turbulence, ADA went bullish again. The token logged significant gains on Sunday, leaving many altcoins behind.
Moreover, the 20-day exponential moving average on the ADA daily chart (EMA-20: blue wave) took the horizontal pathway rather than sloping down below the 50-day moving average (MA-50: red wave) and narrowly escaped forming a death cross.
In hindsight, the death cross happens when a short-time moving average drops below the long-term moving average. This pattern typically predicts further bearish behavior and losses until the short-term MA restores itself.
There’s a trendline noticeable on the ADA daily chart. It has proven itself significant as both resistance and support line in the last 3 weeks. Given the overall bullish momentum, the $1.54 price margin might act as additional support if Cardano price corrects in the upcoming sessions.
What’s behind the Cardano bull?
Cardano blockchain platform introduced a new smart contract rollout Alonzo. It increased the functionality of Cardano, subsequently boosting the ADA price. Aparna Jue, the product manager of Alonzo, explained the features of the project:
The new protocol update is promising to be a gamechanger for Cardano. It is the first step in a series of updates, earmarked for the next 3 months. Charles Hoskinson, Cardano’s founder, and CEO also explained the details in his Youtube live, giving his followers more information on the upcoming plans.
Smart contracts are a big step for the Cardano ecosystem. They will allow the blockchain to host DeFi applications and compete with other similar platforms.
News of the developments in the Cardano ecosystem has given traders further incentive to go bullish on ADA. The token logged a 20 percent gain despite the shaky climate throughout the market. There are grounds to believe the bullish trend might continue, should Alonzo testnet have a successful run.
ADA is currently the fourth largest cryptocurrency with a market cap north of $53.5 billion, as of the moment of writing.