Cardano Turns Bullish In The Short-Term, But Is That All?

Cardano, (ADA) saw the bulls reclaim control after a long period of bear territory. It is an encouraging development for this digital asset that remains to be one of most widely used and largest cryptocurrency networks. But, while the bullish levels for the short-term have been solidified, it is not clear how the asset views the long-term.

ADA Bullish for the Short Term

Cardano’s (ADA), successfully crossed above $1.2, indicating that it has a bullish trajectory for the near-term. This is reflected in the fact that Cardano (ADA) trades above its 30 and 50 day moving averages. If the asset is to continue its bullish trajectory, this is an important indicator. Investor sentiment has started to improve for the first month in months.

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Cardano investors are now experiencing a marked decrease in selling pressure for the first time since beginning the downtrend. While most indicators point to sell, this gap is smaller. This is a sign that sellers are being challenged by buyers in volume. If this trend continues in the vein, then ADA’s recovery is expected to continue as more investors turn towards selling.

Cardano (ADA) price chart from TradingView.com

ADA prices reach $1.2| Source: ADAUSD on TradingView.com

The digital asset is not likely to recover in this timeframe. This is a problem because the recovery process remains early. Two-weeks are the shortest time the digital asset has been in the top ten on current trends.

What about the Long-Term?

Cardano’s (ADA) long-term performance is not as good. The rally is still early in stages, as I mentioned. However, the downtrend that has been prevailing for so long can also be explained by Cardano (ADA). This is apparent in the way the cryptocurrency performs on the 200 and 100-day moving averages.

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ADA is still not able trade at these levels despite the surge in recent trading. The indicator aren’t looking promising and it must break $1.5 to become bullish long-term.

ADA trades currently at $1.22. It is currently trading at $1.22. The next major resistance level is at 1.273. It is still far from $1.5, but it can be achieved if momentum increases.

Featured Image from Medium. Chart from TradingView.com

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