Cardano Price Held Down by 50 EMA Line on the Daily Chart

Cardano Price Held Down by 50 EMA Line on the Daily Chart

  • BTC broke past $30k in the last 24 hours.
  • ADA rallied by more than 25% in the last 24 hours to surpass SOL and XRP in terms of market cap.
  • Technical analysis suggests that the price of ADA may continue to rise if it breaks above the 50 EMA line.

The cryptocurrency markets have rallied slightly over the last 24 hours, with the market leader, Bitcoin (BTC), breaking comfortably above the $30k level to $31,525.00, according to CoinMarketCap.

Another price movement to note is that of Cardano (ADA), which has risen 25.85% in the last 24 hours to $0.6539. ADA has also posted gains in the last seven days as its price is also up by 26.40% in the last seven days. The gains posted by ADA recently have allowed it to surpass both Ripple (XRP) and Solana (SOL) in terms of market cap as ADA moves to number 6 on CoinMarketCap’s list.

Now that ADA has posted the gains that it has, what’s next for the coin in the short term?

ADA pushed by 50 EMA
ADA pushed by 50 EMA Source: TradingView

Looking at the daily chart for ADA/USDT, the 50 EMA is acting as resistance at the moment as the price of ADA attempted to break past the line but failed.

The RSI for ADA is still well above the RSI SMA line and is sloped parabolic upwards. However, it will all depend on whether ADA can break past the 50 EMA line or not. It does seem that there is enough buy volume that has entered the market for the bullish move to continue.

There is still room for the price of ADA to move before it enters into overbought territory as the RSI currently stands at 56.82. The price movement may be in anticipation of the upcoming hard fork. The three factors: market anticipation, increase in buy volume, and the current RSI reading suggest that the price of ADA may continue to rise.

Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.