Cardano Momentum Indicates Upside Potential
Cardano, the third-generation blockchain, has seen a 10% increase over the past week, positioning its native token ADA for further upside momentum. With the price nearing its 20-day Exponential Moving Average (EMA), a key technical level, buyers seem ready to propel the altcoin to new highs.
As ADA approaches this breakout zone, a comprehensive analysis of technical indicators and on-chain data suggests that bulls have regained control of the market. Let’s take a closer look at these signals pointing towards a potential explosive breakthrough for ADA holders.
Currently, ADA is trading near its 20-day EMA. This moving average gives more weight to recent prices. When an asset manages to rise above this average, it signals a shift in short-term momentum. It transitions from a bearish trend to a bullish trend.
This breakthrough confirms that buying pressure on ADA is intensifying, paving the way for renewed momentum. If ADA manages to sustain above this EMA, it could benefit from a robust dynamic support, giving buyers more control.
On-Chain Indicators Strengthen Bullish Momentum
On-chain metrics further support this positive outlook. According to Santiment, the Realized Profit/Loss (NPL) of the Cardano network has turned negative, signaling that most holders are currently at a loss.
Historically, this situation discourages selling pressure, as investors are less likely to part with their holdings at a loss. This behaviour promotes longer holding periods, tightening the supply and potentially driving ADA price up for a period.
On the daily ADA/USD chart, the Chaikin Money Flow (CMF) indicator, currently positive at 0.04, reinforces this bullish outlook. This signal indicates that buying pressure outweighs selling pressure, reflecting significant capital inflows into ADA. Investors seem to be accumulating rather than divesting their positions.
If this trend persists, it could continue its momentum and reach $0.70. However, a wave of profit-taking could reverse the trend and push the price back to $0.55.
How to Buy Cardano (ADA) on WEEX
If you’re looking to invest in Cardano’s ADA token, the WEEX platform offers you the opportunity to do so quickly and safely. Simply follow these steps:
- Create an account on WEEX and verify your identity.
- Deposit funds via credit card, bank transfer, or crypto transfer.
- Look for the ADA/USDT pair on the Spot market.
- Enter the desired amount and complete the purchase.
It’s important to note that the cryptocurrency market remains volatile. Therefore, it’s advisable never to invest an amount you can’t afford to lose.
