Cardano (ADA) Bounces Back From The Red Zone, Will It Continue Minting Gains?
Cardano is gaining slightly today as the bulls seek to rally out of the bearish zone. Its trading volume is down by over 15%, but its price has entered a consolidation phase.
ADA is trading above its 7-day low of $0.3512, implying that a return to the 7-day high of $0.3967 remains possible.
ADA Price Prediction
ADA is in a sideways trend today, staying above its 200-day Simple Moving Average (SMA) as the bulls seek to push it to an uptrend. Its price action in the last three days shows that the bears and bulls are even in the market. However, it is below the 50-day SMA, a short-term bearish sentiment for the asset.
Related Reading: Cardano May Sink To This Level As Bears Keep Gaining Leverage
Also, the Relative Strength Index (RSI) is 40.70 in the neutral zone and moving upwards. The RSI suggests that the bulls will likely reclaim control of the asset’s price action in the coming days.
ADA’s Moving Average Convergence/Divergence (MACD) is below its signal line and showing negative values. It is a bearish sentiment for the asset, although the histogram bars are fading, hinting at a possible recovery.
ADA has found strong support at the $0.3606 price level for some days, shielding it from dropping to the next support level of $0.3453.
Based on its historical behavior, it will likely rally off this support level to break the $0.3767 resistance and test the next resistance level of $0.3945. Expect a positive trend soon if ADA rallies above the $0.3767 resistance.
Trends On Cardano Network
Cardano is a renowned developers’ hub committed to innovative network developments and trends that benefit its community.
#Cardano‘s recent upgrades are improving interoperability, scalability and sustainability, making it an attractive blockchain for developers creating DApps. In this blog, we look at the Valentine signature changes, dynamic P2P, Hydra, and more.https://t.co/I0od7Czu38
— Input Output (@InputOutputHK) May 8, 2023
The recent Hydra upgrade is one of the trends that will likely improve its price performance moving forward.
According to the lead Cardano developers, Input Output, Hydra is a family of protocols built to improve network scalability. It functions as an off-chain mini-ledger for a small community similar to the original on-chain ledger but maximizes speed and is cost-efficient.
Hydra uses smart contracts to interact with its users, processing activities like bank transfers, NFT auctions, and lightweight payments.
Hydra Head is scalable, and its applications can run off-chain relieving the main chain of load and improving throughput. Also, its transactions are faster than the main chain Cardano layer 1 (L1) transactions.
Cardano has also launched the first mainnet-compatible Hydra node, version 0.10.0, a Cardano developer, Sebastian Nagel, revealed.
He noted that the API was updated to accommodate the first round of user requests. Nagel further released a link to the Hydra Head Roadmap for the community.
Featured image from Pixabay and chart from Tradingview.com