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Cardano (ADA) Reaches Psychological Support Level

Thu, 08/10/2023 - 17:00
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Arman Shirinyan
Cardano shows positive dynamic, but psychological resistance does not go anywhere
Cardano (ADA) Reaches Psychological Support Level
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Cardano (ADA), a prominent figure in the blockchain ecosystem, has recently touched the pivotal $0.30 resistance level, a significant milestone that many analysts view as the gateway for ADA to potentially initiate a new uptrend.

Resistance levels in the world of cryptocurrency are not just mere numbers; they carry a profound psychological weight. Often, these levels can dictate the trajectory of the coin, either propelling it into a bullish mode or sending it into a downward spiral. For Cardano, the $0.30 mark has always been that critical juncture, and its recent contact with this price level has spurred conversations across trading desks and digital currency forums.

Cardano chart
Source: TradingView

Interestingly, despite reaching this threshold, ADA seems to be in a reversal mode as of now. However, it is crucial not to perceive this as a definitive bearish signal. The overall crypto market landscape is showing signs of recovery, and there is a conspicuous absence of intense selling pressure. This combination bodes well for ADA, indicating that even though it is momentarily reversing, the stage could be set for a bullish resurgence.

The decentralized finance (DeFi) space is ever evolving, and Cardano, with its advanced smart contract capabilities and emphasis on sustainability and scalability, remains at the forefront of this evolution. Its recent price movement, intertwined with broader market dynamics, reinforces the idea that ADA is not just another token but a critical player in the digital finance realm.

Ethereum faces challenges

Ethereum (ETH), a titan in the world of cryptocurrency and smart contracts, recently faced a challenge breaking through certain resistance levels, particularly the $1,880 price point. While traders and investors had high hopes for ETH's performance, this hurdle has raised a few eyebrows. However, it is not all bleak. There is a new target on the horizon that market watchers are keenly observing.

20 Trillion SHIB Held by Robinhood, Bull Run Will Be Euphoric: Big Shiba Inu Enthusiast

The 50 Exponential Moving Average (EMA) has emerged as the primary focus, and for many, it is the most significant resistance point that Ethereum currently grapples with. EMA indicators, especially the 50-day one, are revered in the trading community for their capacity to illustrate price trends over specific periods, making them indispensable tools for predicting potential future price movements. For Ethereum, the 50 EMA encapsulates a lot of the aspirations and strategies of its investors.

Yet one cannot ignore the $1,880 price point. Ethereum has danced around this level repeatedly, trying to break through but never truly succeeding. This particular price level has become a pivotal battleground for ETH, representing a psychological and technical barrier. Each attempt to surpass it only underscores its importance in the current market dynamics.

Shiba Inu continuously moving up

Shiba Inu (SHIB), the popular meme-inspired cryptocurrency, is once again capturing headlines and turning heads. Over the last four days, SHIB has witnessed a remarkable growth spurt, adding a staggering 20% to its value. This impressive uptick is not just a mere blip but signals robust momentum gathering in the coin's favor.

One of the most compelling indicators of this bullish sentiment is SHIB's breakthrough of the 200 Exponential Moving Average (EMA). For those less versed in the intricacies of technical analysis, surpassing the 200 EMA is often seen as a positive and significant event, suggesting that the asset is moving into a phase of sustained upward movement.

20 Trillion SHIB Held by Robinhood, Bull Run Will Be Euphoric: Big Shiba Inu Enthusiast

More temptingly, the charts hint at the setting up of a "golden cross" on the daily price chart. The golden cross, a scenario where a short-term moving average crosses above a long-term moving average, is a bullish breakout pattern. If this holds true and the golden cross manifests, it could well mark the beginning of a long-term price rally for Shiba Inu. Such an event would undoubtedly stoke the enthusiasm of SHIB supporters and likely draw in a new swath of investors eager to ride the wave.

Further boosting optimism is the noticeable shift in volume. SHIB's volume has transitioned into an ascending pattern, indicating heightened trading activity and interest in the meme coin. This amplified volume further substantiates the notion that the coin is not just experiencing a transient surge but is on a genuine growth trajectory.

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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.