Is Cardano Price Ready for the Next Recovery Leap; $1 ADA In sight?
On 20th November Monday, the Cardano price witnessed a significant surge in buying pressure which led to a 5% intraday gain. This surge followed a proposal for a potential partnership by Cardano’s founder, Charles Hoskinson, to Sam Altman, the founder of OpenAI. By the press time, the ADA price traded at $0.36, with a market cap of 12.9 and a 24-hour trading volume of $360 Million.
Over the last fortnight, Cardano price has increased by 10% with the smart contracts token surging 62% since the beginning of the year.
Is Cardano Price Heading To $1?
A couple of bullish crosses on the daily chart affirm the bullish thesis in ADA price. The first golden cross pattern formed when the 50-day Exponential Moving Average (EMA) (red) crossed above the 100-day EMA (blue).
A golden cross pattern serves as an assurance that it’s time for bulls to take the reins. Its impact on the token pulled ADA above the dotted descending trendline and the resistance at $0.3.
As investors booked positions ahead of the bull run, traders capitalized on short-term positions in ADA including scalping opportunities, which allow them to enter and exit the market on short time frames.
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The second golden cross pattern and the most impactful occurred with the 50-day EMA moving above the 200-day EMA (purple). This formation boosted Cardano through resistance at $0.33 and subsequently the seller congestion at $0.37.
Although Cardano extended the up leg to $0.41, the token could not hold support at $0.4. Instead, a correction followed with ADA sweeping liquidity at $0.35.
It stands out that resistance between $0.4 and $0.41 is the biggest blockade hindering bulls from starting the next recovery phase above $0.5.
However, the Relative Strength Index (RSI) position above 70 (in the overbought region) could keep traders interested in ADA—who will provide the momentum required for gains past $0.5 while bringing the psychological $1 level within reach.
Despite the obvious bullish outlook in Cardano, it is too early to rule out consolidation possibly between support at $0.37 and resistance at $0.41. Movement above this region would imply a stronger breakout.
However, trading below the same zone could be seen as a sign of weakness. In such a case, ADA is not immune to more dips with $0.33 and $0.3 still levels worth watching.
Hoskinson Flaunts Potential Partnership With Open AI Founder Altman
Charles Hoskinson, the founder of Cardano, seized the moment and invited the founder of artificial intelligence firm OpenAI Sam Altman to consider collaborating on a decentralized LLM.
Sam @sama since you have some free time now. If you are interested in doing a decentralized LLM, then hit me up. Would be a fun Cardano Partnerchain
— Charles Hoskinson (@IOHK_Charles) November 18, 2023
Altman, the man who helped grow OpenAI to become a leading AI company in the world boasting a multi-billion dollar deal with Microsoft, was fired as CEO by the board on Friday.
With Altman out of OpenAI, Hopkinson believes a partnership on “a decentralized LLM” could entice Altman. However, the collaboration is unlikely following the latest developments regarding Altman being hired by Microsoft on an AI project.
However, the thought of such a decentralized large language model project could elevate the Cardano ecosystem above other crypto networks and boost ADA price.
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