Cryptocurrencies have been able to prolong the bullish sentiments from last weekend to the new week. This move clearly aims to reverse the negative price action experienced last week.
Yesterday was bullish on most major coins, with Ethereum Classic (+14.91), Cardano’s ADA (+12.33%) and TRX (+12.22%) leading the way. Bitcoin Cash ABC (+7.06%), Monero’s XMR (+4.09%), Ethereum (+3.57%), Litecoin (+3.4%) and Ripple’s XRP (+ 3.41%) also made significant gains.
At the time of my writing, the total market cap is $ 255.13 billion. Bitcoin dominance remains at 66%, backed by stable gains earlier this week. And the trading volumes in the last 24 hours amount to $ 122.4 billion.
The Singapore Payment Services Act yesterday openly welcomed global crypto companies to operate in the country after being licensed. The law officially gives mandate the Monetary Authority of Singapore (MAS) to regulate cybersecurity and money laundering.
Bitcoin Price Update
This Tuesday, buyers raised the price of Bitcoin from $ 8,866 to $ 9,390 before the bears made a correction to $ 9,280 in the early hours of Wednesday. On the downside, the next supports are $ 9,300 and $ 9,183, which could reverse up the price.
If the bulls regain control, we have 2 strong levels of resistance at $ 9,425 (high from 11/6/2019) and the psychological zone at $ 9,500/600.
Cardano’s bulls can benefit from the development of the project
From a fundamental point of view, Cardano is undergoing a major transformation. The platform continues to expand in 2020. It was recently announced that it plans to undergo a hard fork in February. The hard fork will be the integration of the Ouroboros BFT consensus into the current Shelley tesnet. This consensus will be the first P-O-S consensus to match the security of the Proof-of-Work consensus for the Cardano ecosystem.
A successful fork can help Cardano get closer to its goal of a fully decentralized blockchain platform for smart contracts.
ADA/USD Technical Analysis
Over the last seven days, Cardano has seen a significant increase in value, rising 22.55%. The upward trend usually signals positive reversals of support/resistance, which the daily chart clearly shows. The price has broken upside the range since December in early January. Subsequently, the price receded slightly to, but rejected $ 0.0413 earlier this month, after which the rally continued.
The closest support is yesterday’s bottom of $ 0.0475. A clear break below it can extend the downside momentum to $ 0.0437 (daily SMA 200) and $ 0.0382 (daily SMA 50). This area is likely to make it difficult for the bears and can serve as a springboard to rebound and recover the price.
On the upside, key resistance is created by SMA 50’s weekly chart at $ 0.0564. Cardano is currently nearing that next level of resistance. We will need to see a steady breakthrough over this area to improve the long-term technical picture. Once that happens, the $ 0.06 level will be the focus of the bulls.
Author: Silviya Velcheva
* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.