Cardano is trading above the $1 level again and could look to break past the $1.50 resistance point in the coming days.
The cryptocurrency market has maintained its positive start to the week, with Bitcoin still trading above the $38k level. The total cryptocurrency market cap is slowly moving towards the $1.8 trillion mark, thanks to the positive performances by the various cryptocurrencies.
Ether, the second-largest cryptocurrency by market cap, has added more than 3% to its value over the past 24 hours and is trading above $2,700 at press time.
ADA, the native coin of the Cardano blockchain, is up by more than 2% over the past 24 hours. The rally saw it break past the $1 resistance level earlier today.
There is no major catalyst behind the latest rally, except the broader market performing well. The total cryptocurrency market cap dropped below $1.6 trillion last week but has since added more than $100 billion.
If Cardano and the broader market continues with its ongoing recovery, ADA will rally higher over the coming hours and days.
Key levels to watch
The ADA/USD 4-hour chart is currently bullish, thanks to the cryptocurrency’s positive performance over the past few hours. The technical indicators show that ADA is performing well and could rally higher soon.
The MACD line has crossed the neutral zone, indicating strong buying pressure on the cryptocurrency at the moment.
The 14-day relative strength index of 60 shows that ADA could soon enter the overbought region if the positive momentum is maintained.
If the bulls remain in control, ADA could look to break past the first major resistance level at $1.192 over the coming hours. In the event of an extended rally, ADA could trade above $1.244 resistance point in the coming days.
However, the $1.50 psychological level would be tough for ADA to break in the short term.