2021-07-31 07:00:00

Cardano price awaits acceptance above this key hurdle to initiate rally towards $1.45

  • Cardano awaits a range breakout from two key averages on the 12H chart.
  • An impending bull cross and bullish RSI keep the ADA buyers hopeful.
  • ADA price eyes a rally to 200-SMA at $1.4545 on a firm break above 100-SMA.

Having witnessed massive volatility on Friday, Cardano price is trading on a cautious footing this Saturday, taking cues from a subdued sentiment seen across the crypto board.

ADA/USD rallied as high as $1.3952 while finding support at $1.1843 a day before. Despite the wild swings, Cardano price remained within Monday’s trading range.  

The upswing in ADA price could be attributed to the launch of a decentralized application connector by Cardano ($ADA) wallet Yoroi that will make it easier for users to interact with smart contracts and these applications once they go live on the Cardano network.

At the time of writing, Cardano price is ranging around $1.30, down 0.80% on the day. The fifth most favorite crypto coin is gaining about 7% over the week.

ADA/USD remains poised for additional upside

As observed on Cardano’s 12-hour chart, the price is wavering in a familiar range, with the losses capped by the descending 50-Simple Moving Average (SMA) at $1.2563.

Meanwhile, ADA bulls continue to find stiff resistance at the downward-sloping 100-SMA at 1.3182.

Therefore, a range breakout appears imminent, with increased odds for an upside break amid an impending bull cross on the said time frame. The 21-SMA is on the verge of cutting the 50-SMA to the upside, which would then confirm a bullish crossover.

The Relative Strength Index (RSI) has turned south but remains well above 50.00, adding credence to a potential move higher.

Therefore, a 12-hourly candlestick closing above 100-SMA could fuel a fresh advance towards the July 26 high of $1.4030.

Further up, the bulls will aim for recapturing the horizontal 200-SMA at $1.4545.

ADA/USD: 12-hour chart

On the flip side, ADA bears needs acceptance below the 50-SMA, below which the bullish 21-SMA support at $1.2470 could be challenged.

The last line of defense for the bullish traders is envisioned at the July 27 lows of $1.2129.

Overall, the path of least resistance for Cardano price appears to the upside.

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