ADA, the main token of the ecosystem Cardanomaintains a positive trajectory and has just overtaken Dogecoin (DOGE) to become the seventh most important cryptocurrency in the world.
This positive development comes despite Dogecoin rising 30% on Tuesday, when Twitter users discovered that their home button icon had changed. Indeed, the blue bird gave way to a dog meme.
With a market cap of $14 billion, ADA surpasses the $13.6 billion the meme token has. In this context, investors are wondering about the future of ADA.
Cardano price registers a 48% increase
Over the past 24 hours, the price of Cardano has remained relatively stable. However, an uptrend seems to be gaining momentum on the daily chart.
After holding the support at $0.30 at the beginning of March, the smart contracts token is gaining more and more momentum and breaking through the selling pressure at $0.35.
The bullish momentum continued until the end of March and the beginning of April. ADA is now hovering around $0.38.
The 200-day exponential moving average (EMA) (shown in purple) is currently acting as a barrier between the price of Cardano and an expected breakout towards $0.60.
The daily chart confirms the positive outlook displayed by the ADA token, supported by an inverted head and shoulders (H&S) pattern. This pattern mirrors the standard H&S pattern, which is a reverse trend formation. However, it appears inverted on the daily chart.
As the graph shows, the first valley, or the shoulder, is followed by a deeper valley, represented by the head, then by another higher valley, represented by the shoulder. The reverse head-shoulders configuration often appears after a prolonged downtrend in the price of an asset.
Traders using this setup should exercise patience and position oneself for the long termslightly above the dotted neck line. Their goal is to achieve a level equal to the distance between the head and the neck line projected from the break point.
Therefore, breaking and sustaining above the 200-day EMA and subsequently the reverse H&S configuration could propel the price of Cardano 48% higher at $0.60. The token last hit this level in June.
If ADA consolidates above $0.40the path of least resistance should remain on the upside as new buyers enter the market.
Also, the indicator of convergence and divergence moving average (MACD) presents a buy signal on the same daily chart.
So, as long as the blue MACD line stays above the red signal linebuyers are likely to maintain their long-term positions in the ADA token.
It is also recommended to observe the imomentum indicator above the middle line, whose upward direction should continue to rise steadily.
Cardano paves the way for gaming support with Paima Studios
Thanks to a partnership with Paima Studios, users of the Cardano blockchain can now fulfill their gambling desires without having to look elsewhere. Indeed, this partnership makes it possible to introduce games based on the blockchain.
As announced by Paima Studios, a blockchain-based gaming platformusers will no longer need to transfer their tokens across different platforms.
Indeed, Cardano has put in place a bridge to reduce the risks associated with the transfer of tokens between blockchains.
Cardano’s collaboration with Paima Studios is non-conservative. In other words, users retain custody of their tokens in their own wallets, without having to transfer them to in-game wallets.
This partnership paves the way for games from other platforms to launch or migrate effortlessly to the Cardano blockchain.
Thus, Cardano overall remains on a bullish outlook as the development of the platform continues.