Cardano (ADA) is starting the week on an interesting, bullish footing powered by promising fundamental developments, after rallying by over 10% through Sunday and marking an over 32% gain through the past one week. At the time of writing, ADA/USD is trading at around $1.77.
During the previous session, Cardano surged to a new ATH over reports that the founder of IOHK – the company behind the blockchain network, had a meeting with the Governor of Wyoming. The news spurred interest in the cryptocurrency amid expectations that the meeting could drive up adoption and/or regulation of the digital token, giving it a leg up over its competitors in the space.
Not only did the report drive up buying interest in Cardano among retail traders, but it also garnered attention from Binance CEO Changpeng Zhao, who helped drive more buzz on the news. According to him, such meetings could help improve the relationship of the crypto industry with regulators and governments, and possibly increase mainstream adoption and interest in this sector.
Late last week, Cardano received additional support after crypto analyst Benjamin Cowen commented in an interview that ADA outperforms market leader Bitcoin in a bull market. He anticipates the uptrend in ADA/USD to strengthen further and drive its price higher, possibly up to $5-$10.
Key Levels to Watch
On the 4-hour price chart, Cardano is trading with a bullish bias as indicated by the MACD indicator. The next immediate resistance level buyers must pay attention to sits at the $1.98 level. A break above this can take ADA’s price to further ATHs above $2, and close to even $2.20.
On the other hand, if the resistance at $1.98 holds, selling pressure can build up and cause a tumble in ADA’s value down to $1.61. In case investors panic further, we could see the bearish trend gather strength and take ADA/USD down all the way to the key level at $1.40.