Cardano (ADA) has been one of the top-performing cryptocurrency assets in 2020, rising by more than 40% against its USD trading pair since the turn of the year.
However, from a technical standpoint, it has now been confronted with the 200 exponential moving average (EMA) on the daily chart, which is acting as a bitter point of resistance.
A breakout here would see Cardano trade above the 200 EMA for the first time since July, one month after it surged to a yearly high of $0.116.
The crucial moving average is currently at $0.046 with Cardano trading just beneath it at $0.044. A level of support has also been established in the $0.041 region, which reinforces Cardano’s bullish posture.
Much of the upcoming price action will also depend on Bitcoin’s movement over the coming week. BTC enjoyed a fruitful weekend with a 5% rally to the upside as it now prepares to take aim at the $8,830 level of resistance.
A breakout for Bitcoin ahead of this summer’s halving event would undoubtedly be positive for altcoins including Cardano, as traders are likely to diversify profits into higher-risk investments.
Cardano is now just $30 million away from regaining a spot in the top 10 cryptocurrencies with a current market cap of $1.163 billion.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.