ADA Returns to $0.60 with the Next Price Target May’s High of $0.9047

Key Insights:

• On Monday, Cardano (ADA) rallied by 7.34% to end the day at $0.6085. The breakout session followed last week’s 16.8% gain.
• Investor sentiment towards this month’s Vasil Hard Fork remained the key driver.
• Key technical indicators are bullish. ADA sits above the 200-day EMA.

On Monday, Cardano (ADA) rallied by 7.34%. Following last week’s 16.8% breakout, ADA ended the day at $0.6085.

Early in the session, bitcoin (BTC) delivered support after ending a record nine-week losing streak.

A pickup in risk appetite across the global equity markets also provided crypto market support.

For ADA, however, investor sentiment towards the June Vasil hard fork remained the key driver.

Vasil Hard Fork and News Updates from Input Output HK Deliver Support

ADA has been in recovery mode since the May 12 current year low of $0.3919. Investor focus has returned towards the June 29 Vasil hard fork as the dust settles from the collapse of TerraUSD (UST) and Terra LUNA.

As reported by FX Empire,

“This hard fork is expected to have a much higher effect on the network, even more than its previous hard fork known as Alonzo, which was launched in September of 2021.”

The report went on to say,

“Specifically, the Vasil Hard Fork will implement features such as pipelining, which is intended to contribute towards the enhancement of block diffusion, which can lead to better scaling.”

The hard fork is also meant to improve the developer experience for creating decentralized applications (dApps).

ADA Price Action

At the time of writing, ADA was up 0.12% to $0.6092.

A mixed start to the day saw ADA fall to an early morning low of $0.6029 before striking a high of $0.6099.

ADA left the Major Support and Resistance Levels untested at the start of the day.

Technical Indicators

ADA will need to hold above the $0.6062 pivot to test the First Major Resistance Level at $0.6475.

ADA would need broader crypto market support to breakout from Monday’s high of $0.6452.

In the event of another extended rally, ADA should test the Second Major Resistance Level at $0.6866.

A fall through the $0.6062 pivot would bring the First Major Support Level at $0.5671 into play.

Barring an extended sell-off throughout the day, ADA should avoid sub-$0.55. The Second Major Support Level sits at $0.5258.

The EMAs and the 4-hourly candlestick chart (below) send a bullish signal. At the time of writing, ADA sits above the 200-day EMA, currently at $0.6052. This morning, the 50-day EMA pulled away from the 100-day EMA. The 100-day EMA narrowed to the 200-day EMA; ADA positive.

A hold above the 200-day EMA would support a move through $0.65 to bring $0.70 into view. On a trend analysis basis, a return to $0.70 would then bring May’s high of $0.9047 into play.