Markets
ADA Targets $0.68 as Bitcoin Rally Signals Broader Market Strength
Cardano Price Analysis: The crypto market started the new week on a bullish note, following the lead of major digital assets Bitcoin and Ethereum. With BTC price hitting $70,000 and ETH about to surpass the $4,000 mark, most major altcoins, including Cardano, have witnessed renewed buying interest. At the time of publication, the ADA the price is up 3.5% and shows a reversal of the recent correction to break overhead resistance.
Read too: Solana (SOL) vs Cardano (ADA): How the ‘ETH Killers’ Performed This Week
Cardano Aims for Breakout as ADA Approaches Key Resistance Level
Cardano Price Analysis | Trading view
Over the past six weeks, the Cardano Price has been trading sideways, resonating within two converging trend lines. The altcoin has recovered twice from each trendline, indicating active resistance and support that narrows the price range gradually.
The symmetrical triangle is known to lead a consolidation to regain the depleted momentum of the prevailing trend. ADA price is currently trading at $0.47 and is heading towards the upper boundary of the triangle for a bullish breakout.
Additionally, crypto analytics firm Santiment highlighted that Bitcoin has once again surpassed the $70,000 market cap. This milestone coincides with a pause in US equity markets due to Memorial Day.
📈🇺🇸😴 #Bitcoin eclipsed the $70,000 market cap once again, while #MemorialDay placed the USA #actions markets on pause. This rise is particularly encouraging as the positive movement reveals how #crypto markets can function on the rare days of the week when they are not dependent on… pic.twitter.com/CjhvTKaBF5
– Santiment (@santimentfeed) May 27, 2024
Santiment noted that this positive movement is particularly encouraging as it demonstrates the cryptocurrency market’s ability to function independently of traditional equity markets, a correlation it has maintained since 2022. This development highlights the cryptocurrency market’s growing resilience and potential to thrive even in the absence of conventional market influences.
If broader market sentiment remains bullish, ADA price will likely break above the general trendline to release growing bullish momentum. The post-breakout recovery could push the asset to $0.624, followed by $0.68.
However, if supply pressure on the general trendline persists, Cardano price could extend its current consolidation over the next few weeks.
Technical Indicator:
- Relative Strength Index: O RSI the tilt fluctuation at the 50% mark projects neutral sentiment among market participants.
- Exponential Moving Average: The 100 and 200 days EMA the slope around the $0.5 to $0.52 mark creates a high supply zone for traders.
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