Cardano appears to be breaking out against Bitcoin, as its price has considerably outperformed the apex cryptocurrency in the past few days.
Cardano (ADA) is having a good start to July, bouncing 4% already today to reclaim $0.150. This is a positive sign considering the altcoin dumped 38% in June, its worst monthly performance since November 2018.
The uptick comes after days of consolidation at a key support level around $0.140. This rebound against the USD pair and its recent performance against Bitcoin is beginning to look like the start of a sustained move to higher prices.
ADA/BTC Chart Turns Bullish
The daily ADA/BTC chart shows a clear disparity between the two assets’ price trends in the past few days. While Bitcoin has trended lower, Cardano has gained strength and moved in the opposite direction.
Over the past three days, ADA has gained against Bitcoin. After a mild 0.41% increase on Monday, the ADA/BTC pair rose by 1.65% on Tuesday and an impressive 3.66% so far today. This price trend is reflected in the 4% Cardano rise and nearly 1% Bitcoin drop in the past 24 hours.
Typically, Bitcoin controls the mood of the broader crypto market. Its drop or increase has a ripple effect on altcoins, forcing them to follow its trend in most cases.
As such, the Cardano breakout against BTC is significant. It suggests that ADA could continue to gain strength regardless of Bitcoin’s trend. This could see the altcoin target higher prices if momentum sustains, even if the broader market is bearishly biased.
Resistance Levels Ahead
However, the ADA/BTC pair has clear resistance levels ahead. Currently at 0.00000255, it trades exactly at the 20-day exponential moving average (EMA). This dynamic supply zone forced the pair lower in early June, following the rejection at 0.00000325.
How ADA/BTC reacts around this EMA would determine its next direction. A sustained trend above this level would confirm the breakout, while a rejection would form another lower high and kickstart another leg down.
Higher EMAs like the 50-day, 100-day, and 200-day are at 0.00000279, 0.00000310, and 0.00000369, respectively. They are also areas of interest if the upward momentum endures.
Cardano Volume Spikes 60% as Momentum Returns
Following the rally to reclaim $0.150, trading activity has increased 60% over the past 24 hours to $471.3 million, signaling growing market participation.
Open interest has also improved 1.43% to $371 million, showing emerging derivative interest. The slight uptick in OI shows that the recent increase is not derivative-driven but rather the momentum from dip-buying among spot traders.
Coinglass’s Cardano spot flows activity confirms this. Over the past 24 hours, exchange outflows have surpassed inflows, with the former at $29.13 million and the latter at $28.55 million.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
Be the first to comment