Cardano (ADA) prices are about 10% higher from May 2023 lows, looking at the performance in the daily chart.
Even though trading volumes are relatively low, at least from the recent bull bars, the rejection of lower prices in the past few days is a net positive.
Traders should look for a trigger that pushes ADA prices above $0.38 for bull signals to load. It will be especially so if that breakout bar has high participation, suggesting support from buyers.
Conversely, ADA could continue in its bear trend if there are losses below $0.35, May 2023 low.
Marlow is Live on Mainnet
ADA prices are supported, thanks in part to the continuous development in Cardano. At the current stage, Basho, the platform aims to scale on-chain while enhancing performance. A big part lies in refining smart contracts capability, a feature added in the last phase, Goguen.
Recently, IOG, the developer of Cardano, announced the release of Marlowe on the mainnet. Marlowe offers users tools and domain-specific language (DSL) to develop efficient smart contracts.
Marlowe goes live: be the first to explore the power of #Marlowe's smart contract toolset.
— Input Output (@InputOutputHK) June 1, 2023
Unlike existing language, users can utilize Marlowe even if they have no programming background.
At the same time, Emurgo, the business development wing of Cardano, has forwarded CIP-1694. The proposal aims to bring on-chain governance and spearhead sustainable development in Cardano.
Cardano Price Analysis
ADA is technically bullish if the March to April 2023 price action leads.
For now, prices are in a trading range with the buy trigger at $0.38, coinciding with the 50% Fibonacci retracement level of the March to April range. On the other hand, support is at $0.35.
Overall, the breakout above or below the current $0.35 to $0.38 trade range would shape ADA’s immediate to medium trend.
Moreover, trading volumes are lower. However, the rejection of lower prices in the past few trading sessions could be the base of a recovery after the 18% drop from April highs.
Traders can look for entries if there is a comprehensive close above $0.38. If the breakout bar is wide-ranging with expanding volumes, ADA may rally to $0.42 in a welcomed recovery and trend continuation.
Conversely, unexpected dumps from spot rates that unwind gains of June 2 may see ADA plunge to $0.35. If sellers press on, ADA may drop to $0.30, retesting March 2023 lows.
Technical charts courtesy of Trading View.
Disclaimer: The opinions expressed do not constitute investment advice. If you wish to make a purchase or investment we recommend that you always conduct your research.
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