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Cardano Traders Expecting Breakout as Selling Pressure Retreats

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Wed, 04/20/2022 - 08:00
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Arman Shirinyan
Trading community around Cardano bets on a breakout as ADA overcomes selling pressure
Cardano Traders Expecting Breakout as Selling Pressure Retreats
Cover image via stock.adobe.com

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According to the most recent analytical post by Santiment on-chain metric provider, Cardano traders and investors are expecting a breakout from the coin that gained more than 50% to its value back in March.

In the last 24 hours, Cardano gained around 6% to its value, and traders pushed the ninth largest coin by market cap to a breakout. According to the indicator by Santiment, the crowd is euphoric toward ADA. The metric usually measures the number of posts containing bullish hashtags or words on social media platforms like Twitter.

Previously, Cardano secured its place in the top 10 of the biggest tokens and coins by market capitalization, easily beating Avalanche in terms of capitalization with $32 billion against AVAX's $21 billion. In order to enter the list of top 5 tokens and coins by capitalization, Cardano's market cap needs to exceed $50 billion and move the current fifth-biggest digital asset, USD Coin.

ADA technical analysis

While positive sentiment persists in the community, it must somehow be tied to the technical performance of the asset, which remained in a prolonged downtrend since reaching a new high back in the summer of 2021.

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Bitcoin Mirroring 2018 Bear Market with Long Bearish Streak

According to the daily chart provided by TradingView, ADA successfully "survived" the selling pressure of bears that have followed general market tendencies. Cardano's underlying coin dropped by 20% from the local high and then entered the consolidation channel instead of reaching a lower low, which would have shown a continuation of the downtrend.

At press time, ADA trades at $0.9 and moves in a short-term consolidation channel with its borders remaining at $0.95 and $0.92, respectively.

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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.