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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.
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.
Alex DovbnyaThe 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.
Alex Dovbnya
Gamza Khanzadaev
Dan Burgin
U.Today Editorial Team
Vladislav Sopov