Cardano Price Analysis: ADA/USD Prices Up Amid Positive News, Bulls Target Key Resistance at $0.0430 USD

Cardano-ADA
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Cardano Price Analysis: ADA/USD Prices Up Amid Positive News, Bulls Target Key Resistance at $0.0430 USD

  • ADA/USD spikes by 4% in 24 hours as bulls take charge targeting key resistance level at $0.0430 USD.
  • A break above the falling bearish channel major resistance level at $0.04030 by 21st October is an extremely bullish signal and excellent long position entry point on ADA/USD pair.
  • The bullish momentum on ADA/USD follows an eventful 2 day period in the crypto’s ecosystem – New Balance using Cardano blockchain and the new update announced on Oct. 18.

Cardano’s ADA/USD pair price spiked by 4% in 24 hours testing the $0.04 USD resistance level as users await the launch of Cardano blockchain’s planned update, version 1.7, by the end of October. The partnership with New Balance, announced on Friday, may also have played a role in the ongoing bullish momentum on ADA. The price of ADA/USD is currently holding out above the key support level at $0.03750, aiming to retest the resistance level at $0.040 USD.

Cardano 7-day chart (Source: Coinmarketcap)

The recent bullish momentum in price comes on the back of a successful past 48 hours in Cardano’s ecosystem development. First, the new Cardano v.1.7 update launch has been is confirmed to launch before the end of October. Furthermore, New Balance partnered with IOHK to integrate the use of Cardano blockchain in their supply chain records.

New Cardano update announced

Cardano founder and IOHK CEO, Charles Hoskinson, announced the upcoming update on the blockchain on a short tweet sent out on Oct. 18. The update will be integrated to the long awaited Shelley update according to the report released by Cardano Foundation. Shelley, the decentralized main net of the blockchain, is expected to be released before the end of October.

New balance, footwear giant uses Cardano blockchain

The main story on all Cardano community blogs for the past week is the partnership with giant footwear company, New Balance. The shoe company found its footing in Cardano’s blockchain as a solution to the authenticity problems faced in the global footwear industry. The company will use the NB RealChain, the first deployment of blockchain, to verify and authenticate its retail products.

Since the news broke on Oct. 18, the price of ADA has witnessed a significant rise from a weekly low of $0.03738 registered 24 hours earlier.

Technical analysis on ADA/USD

While encouraged to celebrate the current small wins, Cardano investors should remain wary of the bearish indicators forming on the assets price charts. Looking at the 4-hour technical chart, the price is in a bearish descending channel targeting the channel key resistance at $0.0410. A break above this point is extremely bullish while bouncing off this resistance level may force a downward push on the price towards key support levels at $0.0370 USD and $0.035 USD in the short term.

Source: TradingView

Furthermore, a death cross is forming as the SMA 50 crosses the SMA 200 on the 4-hour candle charts signaling the exhaustion of bulls and an upcoming bear reversal in price. The Moving Average Convergence Divergence (MACD) line confirms the possible reversal as the divergence between MACD and signal line narrows.

With the release of the Shelley update, the Cardano v.1.7 and definite upcoming partnerships, the future looks bright for ADA bulls.

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Cardano Price Analysis: ADA/USD Prices Up Amid Positive News, Bulls Target Key Resistance at $0.0430 USD
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Cardano Price Analysis: ADA/USD Prices Up Amid Positive News, Bulls Target Key Resistance at $0.0430 USD
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ADA/USD spikes by 4% in 24 hours as bulls take charge targeting key resistance level at $0.0430 USD. A break above the falling bearish channel major resistance level at $0.04030 by 21st October is an extremely bullish signal and excellent long position entry point on ADA/USD pair.
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Author: Lujan Odera

Been in the field since 2015 and he still love everything blockchain and crypto! FC Barcelona fan. Author and journalist. Follow him at @lujanodera.

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Lujan Odera 48 Articles

Been in the field since 2015 and he still love everything blockchain and crypto! FC Barcelona fan. Author and journalist. Follow him at @lujanodera.

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