Cardano (ADA) experienced a sharp increase in prices, gathering 60% after fighting for six weeks in a downward trend.
The recent announcement of the crypto reserve of the American president Donald Trump, who includes Cardano, acted as a key catalyst for this price movement, pushing Ada over the level of $ 1 for the first time in more than a month.
Cardano investors collect their losses
The Long / Short MVRV difference indicator shows a significant increase, which suggests that the long -term holders of long -term holders (LTH) have jumped. LTHs generally act as the basis of price stability of any cryptocurrency. When LTH take advantage and choose to hold rather than sell, it prevents price reductions and supports price increases.
This behavior aligns with the recent increase in prices, when long -term holders choose to hold ADA, strengthening the bullish momentum.
The increase in LTH’s profits means strong investor confidence in the long -term perspectives of the assets. This, in turn, suggests that the rally can be more than a simple short -term price movement, but rather the beginning of a more sustained rise.
The relative resistance index (RSI) for Cardano has entered the Surachat area, which is traditionally a lowering sign indicating potential price reversals. However, historical data on ADA reveals that an increase in excessive zone has often reported the continuation of the ascending momentum, and not a reversal. This suggests that despite the excessive indication, Cardano could still continue his rally.
Since the previous cases of RSI entering the exaggerated territory led to price increases for ADA, the current scenario indicates that Cardano can continue to increase. This momentum, if sustained, could lead Ada to new heights despite the downward nature typical of the surachat conditions.
Ada Price rallies
At the time of writing this document, the Cardano price increased by 60%, trading at $ 1.06. This marks significant recovery after Altcoin had trouble below the $ 1 bar for six weeks. Price increase is the direct result of the market reaction to Trump’s announcement, ADA making a strong thrust over $ 1. This level is crucial because it marks a psychological threshold for merchants and investors.
The escape above the barrier at $ 1 is a sign that the ADA could prepare for new rallies. For Cardano to maintain its momentum upwards, it must secure $ 1.00 as a reliable support level. A failure to maintain this level could lead to loss of momentum and yield at lower price levels.
If Cardano does not maintain the support at $ 1.00, it could fall to the next level of key support at $ 0.85. This would invalidate current upward perspectives and review the potential recovery. However, maintaining support at $ 1.00 would consolidate the rally and opened the way for new price increases.
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