Will Cardano Price Lead the Pack After It’s Recovery From the Recent Crash?

Cardano Price has plummeted from its all-time highs of about $2.4 as the cryptocurrency market as a whole seemed to be crashing. Before the bulls again took charge at $1.4, the losses had already extended below $2. ADA, like #Bitcoin-BTC, began a reflex rebound on Thursday, and the gap to $2 was almost nearly closed when it traded around $1.70. Anyhow higher support is needed for the bulls to recover fully before it resumes its bullish rally.

The latest bullish trends seem to be coming after Cardano (ADA) announced on May 17 that their new ERC20 converter will enable ETH tokens to be used on their proof-of-stake (PoS) blockchain. Cardano has supported faster transactions at lower fees than Ethereum since its launch in 2017. They’ve been held back by their inability to provide smart contracts, but Cardano’s founder, Charles Hoskinson, recently announced plans to help them. Cardano has recently received acclaim for its implementation of proof-of-stake, which some claim will alleviate the environmental concerns associated with proof-of-work.

Despite the positive fundamentals and current recovery, the immediate outlook for Cardano remains bearish, based on the study of moving averages on the four hourly map. The MACD indicator is indicating a bullish bias. 

For the time being, the price is just above a key resistance level of $1.63, and future movements will be determined by how much buying interest can be created in the short term. Cardano’s price could rise above the crucial $2 level if more buyers enter the market soon. On the other hand, if the mood in the volatile crypto market continues to deteriorate, we may see ADA/USD revert to bearish territory and fall to the next support level which happens to be around $1.50.