Cardano Price Analysis: ADA Eyes $0.68 as Bitcoin’s Rally Signals Broader Market Strength
Cardano Price Analysis: The crypto market started the new week on a bullish note following the lead of top digital assets Bitcoin and Ethereum. With the BTC price hitting $70000 and ETH poised to surpass the $4000 mark, the majority of major altcoins including Cardano witnessed a renewed buying interest. By the press time, the ADA price is up 3.5% and shows a reversal from the recent correction to break overhead resistance.
Also Read: Solana (SOL) v Cardano (ADA): How The ‘ETH Killers’ Performed This Week
Cardano Targets Breakout as ADA Approaches Key Resistance Level
Over the past six weeks, the Cardano price has been trading sideways resonating within two converging trendlines. The altcoin rebounded twice from each trendline indicating active resistance and support which narrows the price range gradually.
The symmetrical triangle is known to lead a consolidation to recuperate the exhausted momentum for the prevailing trend. The ADA price currently trades at $0.47 and is heading to the upper boundary of the triangle for a bullish breakout.
Moreover, the crypto analytics firm Santiment highlighted that Bitcoin has once again surpassed a market value of $70,000. This milestone coincides with a pause in U.S. equity markets due to Memorial Day.
#Bitcoin has eclipsed a $70K market value once again, while #MemorialDay has put US #equities markets on pause. This climb is particularly encouraging, as the positive movement reveals how #crypto markets can perform on the rare weekdays where it is not reliant on the… pic.twitter.com/CjhvTKaBF5
— Santiment (@santimentfeed) May 27, 2024
Santiment noted that this positive movement is particularly encouraging as it demonstrates the crypto market’s ability to perform independently of traditional stock markets, a correlation it has maintained since 2022. This development highlights the growing resilience and potential of the cryptocurrency market to thrive even in the absence of conventional market influences.
If the broader market sentiment remains bullish, the ADA price is likely to surpass the overhead trendline to release the build-up bullish momentum. The post-breakout rally could push the asset to $0.624, followed by $0.68.
However, if the supply pressure at the overhead trendline persists, the Cardano price may prolong its current consolidation for the coming week or two.
Technical Indicator:
- Relative Strength Index: The RSI slope wavering at the 50% mark projects a neutral sentiment among market participants.
- Exponential Moving Average: The 100-and-200-day EMA slope wavering around the $0.5-$0.52 mark creates a high supply zone for traders.
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