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Cardano (ADA) Price Breaks Through $0.5, Hinting at Rally Ahead

Mon, 05/30/2022 - 08:22
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Arman Shirinyan
Cardano's ecosystem keeps on growing as price breaks through $0.5 resistance after big release
Cardano (ADA) Price Breaks Through $0.5, Hinting at Rally Ahead
Cover image via www.freepik.com

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Following the recovery of Bitcoin and the cryptocurrency market in general, Cardano's native token, ADA, successfully broke through the important psychological resistance and could be setup for a massive recovery rally.

According to the daily chart, ADA is demonstrating signs of "bottoming out" as indicators like the Relative Strength Index are showing a divergence on the chart. After breaking through $0.5, Cardano's next target would be around $0.6 since it is the point of a previous reversal.

Cardano chart
Source: TradingView

The previously mentioned resistance point also correlates with the local descending trendline, moving through the chart at approximately $0.61. To break the resistance, ADA would need the enormous support of bulls, as ADA is not receiving the needed buying volume.

On intraday charts like the four-hour one, we can clearly see the rounding up bottom, which is followed by the extreme drop of volatility and trading volume. Experts were previously anticipating at least a short-term reversal on altcoins after around eight or nine weeks of sell-off.

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The community of the cryptocurrency is more than happy to see a positive dynamic on the native asset of Cardano, as it remains one of the least profitable assets on the cryptocurrency market. ADA had lost more than 80% of its value since reaching its all-time high in September 2021.

Fundamental releases for Cardano

Previously, U.Today reported that the Cardano ecosystem acquired a fundamental solution that will help bring large quantities of funds to the network. The release of an Iagon bridge allows for sending the Ethereum-based USDC stablecoin to Milkomeda decentralized platform and then withdrawing the Cardano Native Asset.

For performing a swap, users would need a moderate amount of milkAda tokens in their wallets.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.