NOIDA (CoinChapter.com)— Cardano leveraged UAE’s goal of becoming a crypto hub to help expand its ecosystem and accelerate adoption. Could this update be bullish for the network’s native crypto ADA? Let’s discuss.
World Police Summit in Dubai — Powered by Cardano
Dubai Police announced its plan to partner with Cardano to integrate blockchain technology into its operations during the World Police Summit in Dubai.
The initiative focuses on using Cardano’s blockchain to secure data transmission from criminal investigations, emphasizing protecting sensitive information and the secure sharing of evidence with international law enforcement, including Interpol.
Moreover, integrating with a government body would help accelerate Cardano’s adoption while giving the platform opportunities for ecosystem expansion.
In 2023, the Dubai Multi Commodities Centre (DMCC) reported adding 2,692 new companies with interests in crypto, gold, and real estate. The Dubai Police’s use of the Cardano blockchain aims to enhance critical investigative information’s security, transparency, and traceability.
In February earlier this year, Cardano partnered with the United Nations High Commissioner for Refugees’ Switzerland chapter to launch a charity staking pool to support refugees globally.
Traders Bullish On ADA As Token Forms Awesome Pattern
Meanwhile, traders have turned bullish on ADA’s price prospects in 2024. Independent crypto analyst Sssebi claimed in an X post that the Cardano token might be looking at a 50%-60% rally in a few days.
Sssebi highlighted that the Cardano token closed above its 200-week simple moving average for the first time since May 2022, highlighting a strong bullish momentum for the token.
Moreover, complementing Cardano’s partnerships and ecosystem expansion is a bullish technical pattern called the “Bull Flag pattern.’
Bull flags consist of a flag pole and result from a near-vertical rise in the crypto token’s prices. Assets in a strong uptrend often form the pattern.
A period of consolidation succeeding the steep uptrend forms the flag of the pattern. Despite the strong vertical rally, the asset price does not drop as bulls maintain the buying pressure. As a result, the breakout from the flag pattern often results in a powerful uptrend.
The pattern is completed when the price breaks out of the flag area, continuing the previous upward trend. Traders calculate the price target of the breakout by adding the length of the flag pole to the breakout price level.
Per the rules of technical analysis, ADA price might rally nearly 40% to reach the theoretical price target near $206 if it confirms the pattern.
Cardano Partnerships Fails Push ADA Above $0.8
Despite recent partnerships and Cardano’s efforts to expand its ecosystem, the ADA price failed to break above $0.8. The token fell nearly 9.3% on March 12 to reach a daily low near $0.7 before bulls moved to defend the 20-day EMA (red wave) dynamic support and recovered some ground.
However, if news of the partnerships and ecosystem expansion fails to attract buyers, ADA price might drop to the support near $0.66. Breaching the immediate support might force the Cardano token to test the 100-day EMA (blue wave) support near $0.55.
On the other hand, an uptrend would likely see ADA price flip the 0.618 Fibonacci resistance near $0.84 before targeting the resistance near $0.96.
The relative strength index, or RSI, remained neutral for ADA, clocking at 59.03 on the daily charts.
