Cardano on an upward trend: price breaks resistance at $0.95!

Cardano on an upward trend: price breaks resistance at $0.95!

Cardano (ADA) price is trading above $0.90 today and is approaching the resistance trendline of a symmetrical triangle pattern on the daily chart. This positive development is accompanied by an increase in open interest (OI) to $1.87 billion, indicating increasing confidence and demand among traders. Long positions in ADA have also increased to 51.31%, up from 47.06% at the start of the week, supporting bullish sentiments. These trends are significant as Cardano saw a stable price increase of 3.81% on Wednesday, supported by Cardano founder Charles Hoskinson, whose backing for proof-of-work blockchain Ergo further fueled the momentum.

Hoskinson has made a clear commitment to Ergo, especially after HTX, a trading platform, announced the delisting of Ergo. This delisting was triggered by HTX's demand for $100,000 in marketing fees - an amount Ergo was unwilling to pay. Hoskinson also suggests developing a partner chain for Ergo to leverage Cardano's infrastructure. This could increase demand for both Ergo and Cardano, improve transaction speeds and offer double rewards to miners.

Technical analysis and price forecast

Cardano has continued to gain value over the past four days, breaking above both the 200-day Exponential Moving Average (EMA) and the 50% retracement level at $0.9182. The price is currently testing the above-trend line of the symmetrical triangle, which is near the $0.9500 level. A close above this level would represent breakout confirmation, with a target of $1.0145, the 61.8% Fibonacci retracement level.

Technical analysis shows a Relative Strength Index (RSI) of 60, indicating increasing buying pressure. However, a decline in the RSI could indicate a potential reversal, making traders cautious about possible changes. In addition, the Moving Average Convergence Divergence (MACD) shows increasing bullish momentum, which supports the positive market development.

On the other hand, a decline below $0.9182 risks the price falling to the 50-day EMA at $0.8472. Traders are eagerly waiting to see how the situation surrounding Ergo and market developments will develop in the coming days.

Overall, Cardano is currently showing strong bullish indicators supported by technical growth and strategic partnerships. The next few days will be crucial for ADA's further performance on both a technical and fundamental level.

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