- Summary:
- ADA price rose for the second straight session on Monday, with positive sentiment around its ecosystem expansion providing fuel.
ADA price rose further on Monday, gaining 2 percent to trade at $0.400 at the time of writing. With that, Cardano price could be on course to register the first back-to-back gains on the daily chart since mid-June, underlining its poor run in recent weeks. ADA is rising at a time when the wider crypto market is experiencing a downturn, and this could potentially bring more inflows into its ecosystem.
The latest gains are fueled by Cardano Founder, Charles Hoskinson’s announcement that the ecosystem had established an interim Constitutional Committee as it transitions to a decentralised governance structure. Also, its integration with the Inter-Blockchain Communication protocol is a key driver for the crypto asset price, as it enables the development of EVM-compatible applications in the Cardano ecosystem.
Most ADA investors are hoping for a return above $0.50, which has been a key psychological barrier for the crypto asset. Cardano has not reached that mark since May 21, underlining its dominance by selling pressure. Notably, a break below $0.50 on that day triggered a sustained downtrend that created a bearish sentiment around the asset. That saw it miss out when the rest of the cryptocurrency market made substantial gains in May and part of June. The Chang Hard Fork potentially sets the stage for ADA price trend to be an outlier once again; this time moving up when the rest of the market is heading down.
Technical analysis
The momentum on ADA price signals control by the buyers, and the upside will likely prevail if the price action stays above 0.399. That could see the next resistance encountered at 0.404, beyond which the upward momentum could get stronger and drive ADA further up to test 0.410. Conversely, the sellers could take control if ADA price moves below 0.399. The downward movement will likely find support initially at 0.395, but extended control by the sellers could breach the support, and invalidate the upside narrative. Also, it could strengthen the downward momentum to test 0.387 in extension.
