Crypto bulls are back in action these days, but can ADA/USD sustain its rally past this key resistance level?
Don’t forget that Cardano’s Djed stablecoin is set to launch soon, so we might see a bit more action in the coming days.
Check out this upside barrier I’m watching.
Cardano (ADA/USD) 1-hour Chart
ADA/USD has been cruising with higher lows and higher highs inside an ascending channel visible on the hourly chart.
Price recently bounced sharply off support and is closing in on the resistance again. Will it hold?
Stochastic is suggesting a return in bearish vibes, as the oscillator is already turning lower from the overbought region.
In that case, Cardano could retreat from the channel top at the .4000 level and dip back to nearby support zones.
However, the 100 SMA is safely above the 200 SMA to suggest that the path of least resistance is to the upside. In other words, there’s still a chance that price could bust through the channel top!
If that happens, ADA/USD might be in for a steeper climb to the next long-term resistance levels. Better keep your eyes peeled for long green candlesticks closing above the channel if you’re planning on catching a breakout.
If you’re hoping to get a more conservative entry, you could hold out for a pullback to the channel bottom near the 200 SMA or the mid-channel area of interest at .3800.
Additional volatility is expected leading up to the launch of the Cardano network’s Djed stablecoin next week.
We are pleased to share another update about Djed’s progress and to inform you that the launch is scheduled for next week!
Read more: https://t.co/7kPjfGMNmk$DJED $COTI @InputOutputHK @Cardano pic.twitter.com/mHA5KVblay
— COTI (@COTInetwork) January 24, 2023
This comes with a host of features and fresh applications in the DeFi space, which could boost the adoption of the Cardano ecosystem.
Stay tuned for updates on whether there are any delays or if the launch goes smoothly, as this could make or break Cardano’s trend!
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