As of now, many folks in the crypto space were still surprised by the incredible price ran of Cardano (ADA). It is the latest crypto asset that made its price to burst in great proportions.
The surprising price has led many traders to ditch their LTC, XRP, or ETH, and then, rush to buy ADA. With high trading numbers, the price of the crypto even moves further up.
As of January 22nd, ADA is a new entry of the top performers in the crypto market. The bears continue to protect the $0.0461161 overhead resistance level.
Since the 200-day SMA is positioned below that overhead resistance level, everyone should be more attentive to that level. In case that bulls successfully scale the ADA’s price above the $0.461161 level, the crypto asset can potentially enjoy a momentum.
Once the ADA/USD pair broke the above $0.0461161 level, that will call for a rally towards $0.0560221. Since the RSI is positioned in the positive territory while the 20-day EMA is flattening out, the advantage belongs to the bulls.
Meanwhile, the traders have to wait for the ADA’s price to close above the $0.0461161 level before attempting for long positions. As for the initial stop loss, it can be positioned under the $0.039 20-day EMA.
Is ADA Starting to be Dominant in the Crypto Space?
Apart from Ethereum, Ripple, and Bitcoin Cash, Cardano is among the top markets. That is despite the 96.74% collapse against the USD since the all-time high at above $1, and dozens of collapse percentage over Bitcoin. According to some analysts, the ADA’s price against BTC can reach a massive explosion.
It’s interesting to note that the market capitalization of ADA has reached above $2 billion, which was just a few away from the top cryptocurrencies. With the culminated price rally of ADA, its market value exploded to more than $12 billion, making it the sixth crypto-asset sitting behind the BTC, ETH, BCH, XRP, and LTC.
What Pushed the Massive Surge of ADA?
More often, cryptocurrencies tend to surge big time after great announcements, like Ripple being adopted by a number of banks in Asia and BTC’s futures trading. But, in the case of ADA, the rise does not result from huge announcements.
The increasing number of novice crypto investors is among the factors that pushed the massive price surge of ADA. These investors find Bitcoin to be too expensive, the same way with the Dash, Ethereum, and Litecoin. Since novice investors look for coins with lower valuation, they are attracted by ADA.
Furthermore, the crypto asset has been capitalized in Asia’s core market, mainly Japan and South Korea. In fact, ADA has experienced more than 90% of the trading volume from the two countries. Aside from that, Binance and Bittrex became the most important exchanges for the crypto.
Since smart contracts are aimed to be the future of crypto tech, ADA is expected to be among the biggest players in the crypto space. Some analysts see that ADA can possibly dethrone ETH in the near future.