Cardano and its holders have had a pleasant two weeks as the price of ADA token surged by 70% [in terms of USD]. The surge, is likely to have occurred as a result of the new update “Shelley”, which will enable staking on the Cardano network.
Additionally, on-chain metrics show volume transactions spiking, which has led analytics firms to suggest that this surge might be fueled by “large investors”. On June 9, the Haskell Shelley test network will open for members who want to run a stake pool. On June 16th, however, the public test network will be opened to all users.
The bigger timeframes
As seen below, the monthly chart showed the beginnings of a parabolic rally, which shows promise if it breaches the 952 sat zone. Additionally, the token has seen 3 monthly candles with higher closes, indicating a bullish sign. Furthermore, the weekly chart [on the right] showed the 67% surge [in terms of BTC], which also, is a bullish indication. However, for both time frames, there is a requirement that the price breaches the 900-1000 sat resistance zone.
ADABTC TradingView
Hourly Chart
ADABTC TradingView
The hourly chart indicated the formation of a falling wedge, which has an inherent bullish bias to it. Furthermore, a similar pattern formed before this showed a bullish surge as well. Combining the price action with the RSI, it can be noted that there is a repetition of the same sequence of events [i.e., drop in price, and RSI]. However, even in the hourly time frame, there is a resistance that can be seen at 900 to 950 sats that extends up to 1050 sats. Hence, breaching this level is extremely important.
With traction building up for the Cardano token due to the launch of Shelley and the investors rallying the price, this could easily breach the aforementioned resistance. In case, there is a failure of breaching this zone, the price will retreat, taking it back to the 785 sats perhaps, lower.
