Cardano’s price stabilised above the $1 mark after a period of volatility. Here’s what happened and what to expect from ADA in the following days
Fundamentals and past price performance
Cardano’s overall outlook has been great lately, especially with the progress it made towards launching its Goguen (smart contract-enabling) upgrade, as well as the Mary upgrade launching on the mainnet.
Ladies and Gentlemen, the rocket is in the air. Mary will reach orbit in one epoch: https://t.co/7D9WTH68iw welcome to the Mary era: “I was benevolent and good; misery made me a fiend. Make me happy, and I shall again be virtuous.”
— Charles Hoskinson (@IOHK_Charles) February 24, 2021
Cardano’s relative place in the ecosystem has, however, been slightly devalued, as Binance Smart Chain (another competitor to Ethereum) received a lot of attention lately, and even took the third spot in the market cap top 10 with its BNB coin.
ADA managed to gain 11.44% week-over-week. When compared to other cryptocurrencies, it outperformed BTC’s 2.7% loss and ETH’s 14.28% loss. Cardano is currently the 5th-largest cryptocurrency by market cap, boasting a value of $32.26 billion.
At the time of writing, ADA is trading for $1.035, which represents a price increase of 135.87% when compared to the previous month’s value.
Kraken suffered connectivity issues on 22 February, causing many traders to get liquidated and essentially flash-crashing numerous cryptocurrencies, with Cardano and Ethereum being most impacted. During the crash, the price of Cardano reached a low of $0.156 before quickly pulling back up.
After a thorough investigation, Kraken stated that, while they did suffer from connectivity issues, their servers operated correctly.
ADA/USD daily chart price analysis
Cardano has seemingly finished its healthy retracement phase yesterday, as its price increased by close to 20%, with the daily candle closing above the $1 mark. While today’s trading has been slow, the descending volume and the overall bullish sentiment surrounding ADA may indicate a move to the upside in the short-term.
ADA’s nearest support level is the 21-day EMA, while it faces major resistance in the zone above $1.12.
ADA’s daily timeframe RSI is on the verge of entering the overbought territory, with its value sitting at 68.40.
ADA/USD hourly chart price analysis
Zooming in to the hourly timeframe, we can see that ADA is currently consolidating and trading sideways on slightly descending volume. ADA’s downside is well-covered by the 21-hour and 50-hour EMAs, while its first big support level is the 23.6% Fib retracement level of $0.955
What’s next for Cardano (ADA)?
While Cardano’s price will certainly be affected positively by the Mary upgrade launch, its overall long-term position has been slightly compromised by the success of the Binance Smart Chain. The success of BSC has effectively introduced another competitor to the market: one funded by the largest exchange in the world, Binance.