Cardano (ADA) has been caught in the throes of an intense uptrend throughout the past several weeks.
Its massive climb has primarily been rooted in the excitement surrounding the rollout of the highly anticipated Shelley mainnet upgrade, as well as some other positive news that its community has rallied behind.
Although it’s uptrend has stalled as the market flashes some tempered signs of weakness, analysts are still optimistic regarding the cryptocurrency’s mid-term outlook.
One respected trader is now pointing to four primary factors that seem to suggest further upside could be imminent for the token.
For these factors to help propel it significantly higher, Bitcoin must find some stability around its current price levels, as any sharp decline could place significant pressure on the altcoin market.
Cardano’s Price Action Shows Signs of Strength Despite Slowing Momentum
At the time of writing, Cardano is trading up over 1% at its current price of $0.125. This is around where the crypto has been trading throughout the past day.
It is currently down from its fresh all-time highs of $0.135 that were set yesterday.
There have been a few key things helping to back the growth ADA has seen in recent times, including the ongoing rollout of the Shelley mainnet upgrade, news regarding new on-chain development projects from IOHK, and the future addition of Cardano staking capabilities on Coinbase Custody.
Shelley’s implementation is expected to increase the blockchain’s decentralization while also increasing its scalability.
These improvements may help usher in a new wave of development activity that boosts the blockchain’s fundamental strength and utility.
Aside from some positive news-related developments, some analysts are noting that it is technically strong as well.
Nik Patel – a popular analyst – explained in a recent blog post that he believes the crypto could soon journey up towards $0.20 in the near-term, as long as it can close above $0.14.
“Turning to the daily, we can more clearly see the strength of the trend… If we get a close above $0.14 on the daily, I’d expect the rally to continue on towards that $0.20 area.”
Image Courtesy of Nik Patel. Chart via TradingView.
These 4 Factors Could Boost ADA in the Days Ahead
There are four specific things one analyst is closely watching that seem to suggest a close above $0.14 could be imminent for Cardano.
He points to high volume on breakouts, a handful of long liquidations, growing open interest, and negative funding as trends to watch.
“ADA: Volume high on the breakouts, bunch of long liqs recently, OI keeps growing and funding going negative again. While most are calling for a top, I think this keeps going,” he explained.
If Bitcoin sees any sharp downside, it could invalidate Cardano’s tempered signs of strength.
Featured image from Shutterstock. Charts from TradingView.
