The Cardano price has bounced back after days of consolidation as investors react to the new staking news. ADA is trading at $1.5015, which is 65% below its lowest level in April and a few points below its all-time high of $1.5525. It is ranked as the 7th-biggest cryptocurrency in the world with a market cap of more than $48 billion.
What happened: On Monday, I wrote about news that Cardano developers had reached a major deal with the Ethiopian industry to decentralize the education sector. The company said that this was the biggest blockchain deal ever because it will reach millions of customers.
And this week, cryptocurrency giant Kraken started allowing staking of the currency. The company said that it will offer between 4% and 6% for people who have ADA in their wallets. There will be no waiting period and people will start earning instantly. They will also receive their rewards every week.
This is major news since Kraken is a major exchange with millions of customers from around the world. It could lead to more demand for ADA.
The four-hour chart shows that the ADA price has been on a strong upward trend in the past few weeks. While doing this, the currency has formed what looks like a cup and handle pattern. It is now in the process of completing the cup pattern. In technical analysis, this is usually a bullish continuation sign. The currency is also being supported by the short and longer term moving averages. The recent surge comes after the pair formed a bullish flag pattern that is shown in black.
Therefore, I predict that bulls will keep the momentum as they attempt to retest the all-time high that is just 3% above the current level. The price will then consolidate to form the handle section or break out higher. This prediction will be invalidated if the price falls below $1.3642.
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