The ADA token jumped to a daily high of $ 0.057 after having been locked in a small price range with resistance at $ 0.052. This happens as Bitcoin goes down to test the closest support, thus dragging various altcoins. There is a fundamental reason behind Cardano’s rise, and it is this.
Shelley de Cardano’s testnet is being a success
Cardano is already in the first phase of transition to Shelley, a decentralized network whose main purpose is to introduce the Ouroboros Praos algorithm through a hard fork. With what will be changed to a validation by staking.
The protocol that has been implemented is a development on the original version, based on a Proof of Participation consensus. Well, although it is safe, it has some difficulties to face centralization.
With the update, the community around the ADA token is expected to decide on block validators through staking, with a protocol that has several characteristics to make corrupting validators a much more difficult task.
Recently, one of the last steps before the long-awaited official launch of the Shelly mainnet was successfully completed. Friends & Family’s testing network seamlessly made it through its first week.
Another recent good news was the release of the new Cardano Blockchain Explorer 1.0.0 by IOHK. A redesigned application based on the Haskell code, essential to bring new functionality to the deployment of the main Shelly network.
Technical analysis of ADA token
And since the price does not lie, reflecting the progress or failures that a project may go through, Cardano has provided a ROI of 154.59% for its initial investors.
Despite its current price of $ 0.055 being a long way from its all-time high at $ 1.33, the ADA token continues to gain ground among the largest, ranking 11th in the market cap ranking.
From the weekly candle chart, we note how recently the 2019 low zone could not be traversed, indicating immediate weakness for sellers.
After that, Cardano experienced a revaluation of more than 200% in the last 3 months.
Thanks to this situation, today we have 8 EMA and 18 weeks SMA crossed to the upside and working as dynamic supports. From this time frame, there is no relevant barrier until USD 0.62. If it exceeds it, it would be a very good sign for the medium term.
On this price chart, we clearly see Cardano’s recent bullish escape.
Relying on a succession of ever-higher lows, buyers picked up strength to break through the immediate resistance located at $ 0.052.
Currently, we have the 8 EMA and 18-day SMA crossed to the upside, if it stays that way, the next target will undoubtedly be USD 0.062 in the short term. Above, the high at $ 0.071 could be a relevant barrier. The 200-day SMA is also bullish.
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