Thu, 31 Mar 2022 19:00:43 +0000
Cardano (ADA) has seen the bulls finally reclaim control after a long stretch in the bear territory. This is a welcome change for the digital asset which remains one of the largest cryptocurrencies and widely used networks. However, after properly cementing its position in this bullish level for the short term, the question still remains on how the digital asset is looking towards the long term.
The price of Cardano (ADA) successfully broke above $1.2, which puts it on a bullish path for the short term. The indicators for this include the fact that the digital asset is now trading above the 30 and 50-day moving averages. A very important point for the asset if it is to maintain its current bullish path. This, in turn, has seen investor sentiment start to turn positive for the first time in months.
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For the first time since the downtrend began, sell pressure has eased off significantly for Cardano investors. Although the majority of indicators still point towards sell, the gap has become much smaller. This means that buyers are beginning to challenge the sellers in terms of volume. If this trend continues in the vein, then ADA’s recovery is expected to continue as more investors turn towards selling.
ADA price reaches $1.2 | Source: ADAUSD on TradingView.com
This is however only evident in the short term for the digital asset. It is understable though given that the recovery remains in its early stages. With less than a week marked on the current trend, the digital asset looks the strongest on a two-week scale.
In the long term, Cardano (ADA) is not faring as well. This can be attributed to the fact that the rally is still in its early stages as mentioned above but given that the digital asset has remained in a downtrend for the longest time. It is evident in how the cryptocurrency is faring on the 100 and 200-day moving averages.
Despite the recent surge, ADA has not been able to trade above these points. It will have to successfully break above $1.5 for it to turn bullish in the long-term and the indicators are not looking good in this regard.
Presently, ADA is trading at $1.22. It has been on a steady uptrend in the early hours of Thursday. This puts the next significant resistance point at $1.273. A long way from $1.5 but an attainable goal if the momentum continues to push up.
Featured image from Medium, chart from TradingView.com