Cardano (ADA) has experienced a 7.1% surge in price over the past week, reaching $0.263 on Tuesday. Unlike Bitcoin and Ethereum, ADA was able to maintain its support from the 50-day Exponential Moving Average (EMA) and avoid a decline. Throughout September, ADA found support at $0.235, preventing further downward movement. If ADA can sustain its buyer congestion at $0.26 (50-day EMA), it may attract more investors looking for upward momentum towards $0.5 and eventually $1.
According to on-chain analytics platform Santiment, Cardano had the highest developer activity among crypto projects in September with 572 GitHub commits. Other projects with high developer activity included Polkadot, Chainlink, Hedera, and Cosmos. Santiment also suggested that ADA, along with tokens like AAVE and CRV, could benefit from short-term profit opportunities following Bitcoin’s rebound above $28,000.
The current chart for ADA/USD shows clear support and resistance areas. The 50-day EMA acts as support, while the 100-day EMA and lower ascending trendline form resistance levels. The Moving Average Convergence Divergence (MACD) indicator also provides a buy signal and remains in the neutral area. Traders can consider long positions as long as the price stays above the 50-day EMA and the blue MACD line remains above the red signal line.
For a bullish breakout to occur, there needs to be a significant increase in volume to overcome resistance at $0.29, the multi-month descending trendline, and the 200-day EMA at $0.309. Additional resistance levels at $0.33, the middle and upper trendlines, and $0.5 are expected on the path to $1.
However, if support at $0.26 is not maintained, it could complicate matters for the bulls and lead to a test of major support at $0.235.
In conclusion, Cardano’s price has seen a positive increase, and it has topped the list of crypto projects with the highest developer activity in September. With the potential for short-term profit opportunities and a bullish outlook on the charts, ADA may attract more attention from investors in the coming days.
[Author’s Note: This article is for informational purposes only and should not be considered financial advice. Do your own research before making any investment decisions.]John is a well-known crypto analyst and journalist who provides expert insights into various aspects of the digital asset market. He keeps his audience informed about the latest news in the crypto sphere, covering topics such as price trends, on-chain data analytics, NFTs, DeFi, CeFi, and the evolving metaverse. Remember to conduct your own market research before investing in cryptocurrencies, as the market is subject to volatility. The author and publication are not responsible for any personal financial losses incurred.
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