Trading community around Cardano bets on a breakout as ADA overcomes selling pressure
According to the latest analytical article from on-chain metrics provider Santiment, Cardano traders and investors are expecting a breakout of the coin which gained more than 50% of its value in March.
In the last 24 hours, Cardano gained around 6% to its value, and traders pushed the ninth largest coin by market cap to a breakout. According to the indicator by Santiment, the crowd is euphoric toward ADA. The metric usually measures the number of posts containing bullish hashtags or words on social media platforms like Twitter.
Previously, Cardano secured its place in the top 10 largest tokens and coins by market capitalization, easily beating Avalanche in terms of capitalization with $32 billion compared to AVAX’s $21 billion. In order to enter the list of the top 5 tokens and coins by capitalization, Cardano’s market capitalization must exceed $50 billion and displace the current fifth digital asset, USD Coin.
ADA technical analysis
While positive sentiment persists in the community, it must somehow be tied to the technical performance of the asset, which remained in a prolonged downtrend since reaching a new high back in the summer of 2021.
According to the daily chart provided by TradingView, ADA successfully “survived” the selling pressure from the bears that followed the general market trends. The underlying Cardano coin fell 20% from the local high, then entered the consolidation channel instead of hitting a lower low, which would have shown a continuation of the downtrend .
At press time, ADA trades at $0.9 and moves in a short-term consolidation channel with its borders remaining at $0.95 and $0.92, respectively.
