Cardano (ADA) witnessed an 8.38% price surge over the past three days, drawing significant attention. The rise occurred amid Bitcoin’s fluctuations between $58,000 and $61,000, underscoring that Cardano’s network advancements impacted its price more than other less-performing Blockchain networks. ADA had recently slipped to the 11th position, losing its spot in the top 10 to Tron (TRX). However, continued price increases could help ADA regain higher ranks.
How Did Network Developments Boost Cardano?
Significant strides in the Cardano network, particularly Hydra outperforming Bitcoin’s Lightning Network, have created considerable buzz. Recent data from the Hydra DOOM game at the RareEvo Blockchain Event confirmed Hydra’s success, boosting interest in Cardano. This surge in attention prompted investors to capitalize on the hype and take profits.
In the last 24 hours, ADA’s price rose by over 3%, reaching 0.3566, nearing a critical threshold. Coinglass data revealed net outflows from ADA exchanges, suggesting that investors are holding onto their assets in anticipation of further price hikes. The negative net flow of $5.73 million on August 20th marked the most significant outflow since the market crash earlier in August.
What Are the Key Technical Indicators?
The price movements of ADA indicated a bullish trend by breaking out of the falling wedge formation on August 20th, suggesting the start of a new uptrend. Despite this, the price remains below the 200-day EMA. Resistance is expected at the 200-day EMA level of 0.3612, with 0.4054 being the next resistance level above this mark.
Additionally, the MACD histogram shows rising positive momentum, with the MACD line crossing above the signal line, indicating ongoing upward movement. If ADA manages to stay above the 200 EMA at 0.3712, it could target higher resistance levels like 0.4500 for long-term gains.
Valuable Insights for Investors
- Hydra’s performance could drive further price increases in ADA.
- Holding ADA could be beneficial as net outflows suggest investor confidence.
- Breaking the 200-day EMA resistance is crucial for sustained upward movement.
Conversely, if ADA’s price drops below the 0.3480 level, it may indicate market weakness and potential further declines. In such a scenario, a pullback towards 0.3300 and 0.3222 levels might be anticipated.
