Yerevan (CoinChapter.com) – Bitcoin continued facing a stern selling pressure near the $40,000-level. Meanwhile, investors’ attention turned towards altcoins again, believing that the flagship cryptocurrency’s rivals would be able to bring short-term gains to their crypto portfolios.
Cardano’s native token ADA emerged victorious against a bogged-down Bitcoin. The ADA/USD exchange rate logged a 30 percent gain after trading at $1.34 on May 3. It reached as high as $1.89 in the London lunch session Thursday. Meanwhile, in the Bitcoin-quoted market, ADA showed signs of pursuing a massive upside breakout.
Michael Van de Poppe, an Amsterdam-based crypto analyst, approximated the same in his early Thursday tweet, noting that the Cardano token is ready for a price breakout.
In the ADA vs. Bitcoin (BTC) chart presented above, the analyst approximates the future price level according to a Fib retracement pattern. Pinpointing the starting level at the first critical area (lower green bar), the retracement stats bring up to approximately 0.000063 BTC (the upper green bar).
The Fib retracement alone is typically not enough to claim certainty. However, combined with other factors, the assumption gains more merits.
Other ADA Technical Indicators
Cardano was facing a golden cross between its 50-day moving average (MA-50: blue wave) and the 200-day moving average (MA-200: yellow wave). The golden cross generally occurs when a short-term MA crosses over above the long-term MA. Should the cross happen shortly, ADA might see a lasting bullish period ahead.
Moreover, Cardano broke above a significant level of $1.80. This margin has provided both support and resistance for the token more than once since early May. The next significant support/resistance levels include $1.97 and $2.15. According to Mr. Van de Poppe’s prediction, Cardano will be able to break through all of those, possibly establishing a new all-time high.
ADA’s gains didn’t go unnoticed. WeissCrypto, a notable crypto-rating provider, tweeted on Cardano, calling it “more technically robust” than BSC (Binance Smart Chain token). ADA has already made it to the top 5 cryptos with a market cap of over $59.5 billion.
Weiss Crypto’s statements appeared as the Cardano blockchain platform introduced Alonzo on May 27. The upgrade proposes to bring smart contract functionalities to the Cardano ecosystem while allowing ADA holders to join the decentralized finance sector. The platform plans to complete the rollout in phases, completing launch in August 2021.
Where is Bitcoin?
Bitcoin(BTC), on the other hand, has still been struggling since the devastating crash on May 19.
The alpha crypto managed to recover to 39,250. However, it has still to obtain the $40,000 margin with confidence. The token has logged gains in the past sessions and has approached its EMA-20. If BTC manages to use it as support, traders could see more gains in the upcoming sessions.
ADA’s success in the past week, combined with Cardano’s technical development, present a strong case for the token’s future gains. Mr. Van de Poppe spotted a bullish progression ahead. If his prediction pans out, Cardano might see a new all-time high. According to his analysis, it’s high time to buy ADA, as it promises traders significant gains.