Investors in the crypto market are once again aggressively bullish following the collapse of key banks in the United States. ADA, the token powering Cardano, a decentralized ecosystem is up 3.6% in 24 hours and trading at $0.3435 at the time of writing.
Cardano price is not the only bullish asset, considering Bitcoin’s 10.8% jump in 24 hours to exchange hands at $24,427. According to the live price data by CoinGecko, the second largest crypto, Ethereum is closely following in BTC’s steps, hence its 7% move to $1,680.
The total market capitalization is back above $1.1 trillion after investors added 6.5% in value while capitalizing on the fresh bullish momentum being witnessed in the market this week. This bullish outlook in the market will likely hold throughout the week as investors show resilience amidst collapsing banks in the US.
Cardano Founder Charles Hoskinson Slams Crypto Critics
The co-founder of Cardano, the seventh largest cryptocurrency boasting $12 billion in market capitalization and $500 million in its 24-hour trading volume, has called out crypto critics for their unfair representation of the crypto market.
Hoskinson via a tweet chimed in on the recent fall of three banks in the US – that is Signature Bank, Silvergate Bank, and Silicon Valley Bank (SVB).
According to the blockchain champion, when stablecoin issuers like Circle, Paxos, and Tether announce intentions “to hold collateral mostly in cash and T-bills,” crypto critics never react.
Governments have for a long time maintained the notion that “CRYPTO IS SUPER RISKY,” and this way of thinking is unlikely to change even in light of the implosions in the banking sector.
Hoskinson also fired at the banks for choosing “to hold collateral mostly in longer-dated TradFi bonds.” Still, they fail and go down leaving more questions than there are answers.
Despite the impact of the three banks that collapsed in a record four days in the US, the government would according to the ADA cofounder still say, “SEE, CRYPTO IS SUPER RISKY.”
The crypto community appeared to unanimously agree with Hoskinson. One of his followers, with the name ‘CardanoChefPool’, replied to the above tweet saying “and this is the reason why we got into crypto in the first place and joined the movement. The system is broken… I don’t think it can get worse than what it is!”
Cardano Price Flaunts Key Buy Signals
The sharp downtrend in Cardano price from its new 2023 high of $0.4210 slowed down to $0.30, just as analysts expected. Otherwise, losses could surge, forcing ADA to revisit the December low at $0.24.
Given the immense buyer congestion at $0.30, ADA price tapped the liquidity and rebounded sharply to areas marginally above $0.35.
Although investors have been looking forward to Cardano closing in on $0.40, its upside has been capped beneath a confluence resistance created by the 50-day Exponential Moving Average (EMA) (line in red) and the 100-day EMA (line in blue).
Traders who may be looking forward to taking new or additional long positions in ADA may want to wait for the token to validate the uptrend by flipping above this critical area of contention – slightly above $0.35.
A natural break above $0.35 is needed to corroborate the subsequent swing to $0.40 as bulls play the long game to $1.00. Already a buy signal from the Moving Average Convergence Divergence (MACD) reveals the path with the least resistance remains to the upside.
However, it is important to ascertain the position of the MACD line in blue above the signal line in red. The momentum indicator must also be in a generally upward-facing direction for Cardano price to uphold the much-anticipated bullish move.
From the same daily chart, we can deduce the importance of bulls not resting until ADA cracks through the falling trendline resistance.
The first attempt above this line was successful in early February but bulls lost their leverage as the crypto market responded to increased regulatory pressure from US agencies and a worsening global economic outlook.
That said, it would be prudent if Cardano price extended the leg above the trendline in a move likely to close open the door to gains above $0.40 in the coming few days – possibly a week.
Cardano Price Uptrend Steadies In Shorter Timeframes – 4-Hour Chart
Bulls are upholding the optimistic outlook for Cardano price even in shorter timeframes as observed on the four-hour chart. The buy signal from the MACD is more aggressive, with the indicator at 0.007.
Meanwhile, two short-term levels will likely determine where Cardano price is headed next. On the downside, the 100-day EMA (line in blue) at $0.329 is in line to ensure ADA does not pull back to $0.32 and $0.30, respectively.
On the other hand, the 200-day EMA (line in red) caps movement to the upside at $0.35, thus coinciding with the resistance as analyzed using the daily timeframe chart. Still, ADA price must push through the falling upper trendline, as illustrated on the four-hour chart to allow Cardano to stage another aggressive attack on the hurdle at $0.40.
Odds will stay in favor of the bullish outlook as long as the SuperTrend indicator continues to trail the price. In other words, the green line below Cardano price implies that the path with the least resistance is currently to the upside.
If profit booking activities soar as investors move to protect their capital ahead of the Federal Open Market Committee (FOMC) meeting in a week, then ADA’s possible return to $0.32 and $0.30 may not be ruled out immediately.
Nevertheless, investors will likely take advantage of the lower-priced ADA tokens to fill their bags while playing the long game to $1.00.
Cardano Alternatives To Buy Today
If you’re looking for other high-potential crypto projects alongside ADA, we’ve reviewed the top 15 cryptocurrencies for 2023, as analyzed by the CryptoNews Industry Talk team.
The list is updated weekly with new altcoins and ICO projects.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.