There might be a bullish rally for cryptocurrencies like ADA, as the current bearish market might create an opportunity for an increase. Promotional activity and corporate volume following the recent seemingly-bearish gains might prevent a further price rise soon.
Following the recent rally in the crypto market, trader and investor sentiment still bases on extreme fear as the correction continues. However, despite the chaotic situation, cryptocurrencies like Cardano (ADA) still show an optimistic outlook.
In mid-September, the Cardano network will launch its new Vasil hard fork after an admirable performance, gaining over 5% over the last week. ADA outperformed crypto assets with a higher market capitalization like Ether (ETH), whose Merge upgrade will occur soon.
ADA is trading at around 0.512765 and has accumulated a 3.7% gain over the last 24 hours. While its daily trading volume is above USD 850.25 million, its market capitalization is about USD 17.32 billion, according to CoinGecko.
The Price of ADA Might Increase despite the Bearish Market
The Vasil hard fork might finally occur in mid-September, causing excitement in the Cardano community. Despite the ongoing development and testing for the event, the company Input Output Global recently tweeted some updates.
Charles Hoskinson, its CEO, and co-founder, commented that ADA performed at its best, although its price dropped in August. He said that a universal truth about cryptocurrencies is that the markets are not in touch with reality.
Crypto influencer Dan Gambardella recently highlighted there might be a bullish rally for cryptocurrencies like ADA. He considers the current bearish market might create an opportunity for a price increase, as happened in 2018.
Metrics about ADA Suggest a Price Rise in the Long Term
Besides developments in the community and statements from officials and influencers, the metrics about ADA also look promising. The Market Value Realized Value (MVRV) index has increased slightly over the last week, suggesting a potential rise in the price.
Since early August, the number of daily active addresses has also increased, indicating users on the network.
Despite its recent seemingly-bearish gains, the on-chain profit trading of ADA has declined. Promotional activity and corporate volume followed a similar downward trend, which might prevent a further price increase soon.
ADA Breaks above the 200- and 50-Day Moving Averages
Some indicators suggested an increase in the price of ADA, while others indicated a drop.
The EMA ribbon showed a narrow gap between the 20- and 55-day EMAs, which signals a bullish rally. Furthermore, the moving average convergence divergence (MACD) suggested the same blue line above the red one.
However, the latter approached the former, leading the chances of a bearish crossing to skyrocket. The Relative Strength Index (RSI) was neutral, suggesting that the market might head anywhere.
The price of ADA finally broke through the local resistance level on the ADA/BTC pair. The reversal of the ascending triangle contributed to the growth of ADA in the market.
Besides breaking above the modeled resistance level, ADA exceeded the 200 and 50-day moving averages, a usual strong barrier in a bearish trend.
If the price of ADA maintains its pace of growth, a much-needed bullish signal might emerge in the crypto market.
By Alexander Salazar
