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Cardano is back trading above 50-day EMA; Bullish breakthrough in play?

Cardano is back trading above 50-day EMA; Bullish breakthrough in play?
Jordan
Major
3 months ago
2 mins read

In recent days, Cardano (ADA) has been on a bullish streak, and the cryptocurrency may be showing signs of resuming its upward trend after climbing over the critical $1 price mark.

Notably, the decentralized (DeFi) asset is presently trading above its 50-day Exponential Moving Average (EMA), which, like the Simple Moving Average (SMA), measures trend direction over time.

The 50-day EMA applies more weight to data that is more current and often used crypto traders as a bullish uptrend indicator.

Cardano 50-day EMA. Source: TradingView

Given that the largest Proof-of-Stake (PoS) network is currently trading above its 20-day and 50-day EMA, crypto traders may use it to assist in anticipating the direction of the current trend while minimizing the impact of random price variations as moving average may help you determine where support and resistance are located.

Cardano price analysis 

Presently, Cardano is changing hands at $1.01 up 5.19% in the last 24 hours and 25.53% across the previous week, according to CoinMarketCap data.

ADA 7-Day price. Source: CoinMarketCap

Whatsmore ADA is also at the time of publication is one of the few digital currencies inside the top 10 trading in the green. As things stand Cardano has a total market worth $32.8 billion ranking it the eighth-most valuable cryptocurrency by market capitalization.

The ADA ecosystem continues to grow

Elsewhere, Cardano saw a huge spike in the quantity of ADA placed into its staking pools over the course of approximately 12 hours on March 22. 

The massive influx of Cardano into the 23 newly constructed staking pools was nearly 1.5 billion ADA, which equated to approximately $1.4 billion.

In addition, the Cardano TVL (Total Value Locked) on March 22 also reached above $400 million.

In light of the increasing value of TVL and the upcoming Vasil hardfork which is said to vastly increase transaction throughput, many observers anticipate that the Cardano ecosystem will continue to develop in tandem with its currency’s value.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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Jordan Major
Author

Jordan is an investor and market analyst. He's passionate about stocks, ETFs, blockchain, and digital assets. At Finbold.com, he delves into the technicalities to obtain future trends for new market traders and gives insights into user-friendly platforms for beginners.

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