The issue of lack of mass adoption of digital tokens in daily usage has made many critics wonder about the future of digital currencies. However, studies have shown that in the next decade digital tokens will become the legal tender or permanent means of exchange for goods and services (according to the Imperial College London). The study found that in just eight years, virtual currencies, have mainly gained and become the most recent reliable asset class for investing. The course has been successful despite a series of hurdles instilled by regulatory authorities and central banks.
The central bank of China has checked Bitcoin (BTC) trading in recent years. India’central bank has also banned conventional banks in the country from conducting business with digital token exchanges. These two countries and others have made it there goal to ensure that it is infeasible to conduct digital currency transactions. These policies and actions may have affected prices, but tokens have still managed to rally upwards. What is going on with Cardano ADA? Will Cardano bounce back despite the bearish momentum indicated after trade last week?
ADA/USD Pair WIll Cardano Bounce Back?
The ADA/USD pair has shown a bullish run. The charts show that the bulls have provided support for the pair at the 0.13 USD level. However, the bulls have failed in its attempt to push Cardano (ADA) above the 20-day EMA. Many experts had initially predicted that the ADA/USD pair will trade in the 0.13 USD to 0.43 USD levels in the broad range although it isn’t expected to be a straight dash into the top zone from the current price levels as indicated in the chart. Cardano (ADA) will likely face significant resistance at the 0.18 USD and 0.23 USD ranges. Plus 0.28 USD level before going into 0.43 USD.
It will not be a straight dash to the top of the range from the current levels. The digital currency will face a stiff resistance at $0.18, $0.23, and $0.28 before aiming for $0.43.
Our view of a range bound trading will be invalidated if the bears force a break below the support zone of $0.13-$0.111843. We shall propose a trade once we see a decisive move to the upside.