Cardano Rallies from $0.40 Support as Midnight Network Launches: Is More Upside Ahead?

On December 8th, Cardano launched its Midnight Network, a sidechain that focuses on privacy and employs zero-knowledge technology, utilizing the Hydra scaling solution to achieve 100,000 transactions per second in a test environment. This development may boost demand for the ADA token and encourage greater network adoption.

Key Takeaways

The Midnight Network launch could increase ADA token demand and boost Cardano's adoption.
Cardano's price shows a bullish trend, breaking above key resistance levels.
Traders should remain alert for potential bear market signals while also watching for bullish momentum.

Cardano's Midnight Network Launch and Potential Growth

Cardano's Price Movement: Steady Ascent

Cardano 1-day Chart

On the daily chart, Cardano experienced a bullish breakout after closing above $0.439, which was previously a lower high. The $0.40 area (indicated by the cyan box) served as a demand zone that prompted the price movement. Following a retest of this level as support over the weekend, Cardano saw a positive reaction. Since reaching a low of $0.405 on Sunday, the price rallied by 4.9% within 24 hours.

The Accumulation/Distribution (A/D) indicator has been trending higher over the last two weeks, signaling growing demand. Additionally, the Moving Average Convergence Divergence (MACD) is showing signs of decreasing bearish momentum.

Cardano 1-hour Chart

The 1-hour chart also showcases a bullish trend. A bullish structure breakout occurred from the demand zone around $0.41, which has been retested. The imbalance in price (shown in the white box) is currently being tested. The A/D indicator indicates a modest buying pressure over the last two days, while the MACD suggests a potential for bullish momentum, although recent price volatility has led to some mixed signals.

Considering the Bearish Perspective

Although the daily and hourly charts lean towards a bullish outlook, it's essential to remain cautious and consider the bearish scenario. If Cardano's price falls below $0.406 and $0.385, swing traders may need to adjust their perspective. A dip below the local low of $0.37 would indicate a bearish structure shift, prompting long traders to exit their positions or wait for a rebound to close their trades.

Call to Action for Cardano Traders: Bullish Signals Emerging

The bullish patterns observed across multiple timeframes suggest that a move toward the $0.5 to $0.52 resistance zone is underway. In the short term, the $0.44 to $0.45 range may pose challenges for the bulls. Should the market recover, Cardano could target higher levels, potentially rallying towards $0.7.

Conclusion

Disclaimer: This article is for informational purposes only and does not provide financial, investment, or trading advice; it reflects the author’s personal opinion.