The crypto market has shown strength during the month of January. After the successful start Bitcoin registered at the beginning of the year never registered, the market capitalization of the market has been increasing steadily as its dominance has been declining to give way to a new season of altcoins.
Currently, the total market capitalization is around $ 243.71B with a growth of + 0.70% in the last 24 hours and most of the boards are green, with more than 64% of cryptocurrencies in winning territory, as the domain of Bitcoin drops to 66.19%.
Within the winning territory, we find Cardano with his native ADA cryptocurrency gaining ground and fighting a fierce fight with Tron for box 12 of the market.
At the time of writing, the price of the ADA asset is quoted at a price of $ 0.044925 with an increase of + 4.08% in the last 1 day, increasing its market capitalization to $ 1.1 billion dollars.
It should be noted that Cardano had earlier given out the box twelve Tron, after Justin Sun’s cryptocurrency experienced greater growth in its market capitalization.
In addition, the middle part of the top ten of the market is retreating positions, while from positions 11 to 15, the main altcoins including ADA are generating benefits today, which could mean a rearrangement could be seen in the ranking in the next 48 hours.
Among the reasons to assume that ADA can rise in the table and perhaps enter the top ten of the market again, is the fact that an ascending channel which started on January 3 in the $ 0.032 zone has allowed the cryptocurrency garner a profit of + 47.16% in just two weeks and there seem to be no medium-term symptoms that the trend will stop its bullish behavior.
ADA has moved from the support zone located in the red rectangle to consolidate above $ 0.04, which was its support during Q3 2019, before falling to lower levels. Cardano ADA is now building a higher step towards the immediate resistance zone located at $ 0.05, which is coincident with the key Fibonacci levels at 23.6%.
If ADA manages to stay above that level of Fibonacci retracement (green zone), the price could experience a growth close of 70%, something similar to what other projects such as Dash, Monero and BSV already achieved this month.
Cardano ADA May Be Expecting Price correction
According to the 4H graph of the ADA/USD pair on Binance exchange, the cryptocurrency seems to indicate that a price correction is about to occur as Bitcoin begins to correct itself with the rest of the market.
The price of Cardano ADA according to the Elliot impulse wave is indicating that the cryptocurrency could lose $ 0.002-0.004 points in the next few hours and then push again towards the area of $ 0.046, according to the pattern generated in its upward trend after leaving the support zone «red zone».
In that sense, the price has successfully broken the upper Bollinger band and maintains its immediate support in the moving average reported at $ 0.004268 levels. If it manages to stay above this support, then ADA would easily project above $ 0.050 levels in the medium term.
The Aroon indicator is signaling Cardano ADA’s corrective price trend with its bullish signal heading towards 60 percent levels, but its counterpart still in the near bottom at zero levels.
CMF, for its part, points out that investors are withdrawing profits after ADA’s growth in the last fifteen days and will now prepare to incentivize the market for a temporary price correction.