Recent market data reveals a notable upswing in Cardano (ADA), with its value exceeding the 20-day Exponential Moving Average (EMA) of $0.29 as of July 11. This trend indicates an increasing influence of bullish investors, stepping in at lower levels.
As the 20-day EMA remains steady and the Relative Strength Index (RSI) hovers near the midpoint, a balance between supply and demand can be inferred. Analysts are carefully observing whether the bullish trend can drive the ADA price above the 50-day Simple Moving Average (SMA) of $0.31. This progression could potentially initiate a rally towards $0.38, marking a powerful move for ADA bulls.
However, if the price recoils from the current resistance, it may indicate that bearish tendencies continue to persist. In such a scenario, the ADA/USDT pair could oscillate between the 50-day SMA and the uptrend line. A break below the uptrend line could hand over a short-term advantage to the bears.
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Crypto Industry Gains Momentum from Ripple Lawsuit Outcome
A landmark event in the crypto industry that carries considerable significance for Cardano and the entire market is the recent lawsuit ruling between the Securities and Exchange Commission (SEC) and Ripple Labs Inc., a blockchain technology firm. The court ruling clarified that Ripple’s practice of listing XRP on exchanges for trading and using the proceeds to fund operations does not constitute an investment contract, hence XRP cannot be classified as a security.
The ruling is being seen as a victory for not just Ripple, but also the broader cryptocurrency market. Cardano, with its initial coin offering (ICO) in Japan and the absence of venture capitalist involvement, is particularly favorably impacted. The judgment affirms that Cardano’s ADA is almost certainly not a security, making the practice of selling tokens through exchanges perfectly legitimate. This clarity could lead to a resurgence in ADA’s listing on exchanges, thereby positively affecting its liquidity and accessibility.
NFT Market and its Implication on Cardano
The booming Non-Fungible Tokens (NFTs) market is also playing a role in Cardano’s favor. Whiskees NFTs, an NFT initiative operating on the Cardano blockchain, recently reported a noteworthy sale of 7000 ADA. This event signifies the growth of the NFT market and its positive contribution to the market cap of ADA.
Bullish Projections Drive Market Excitement
The recent surge in Cardano price has spurred numerous bullish predictions, adding to the excitement in the crypto community. Some industry watchers have suggested that a $3 ADA mark is a conservative estimate, hinting at a potential stellar performance by the digital asset in the near future.
Despite the promising signs, it’s crucial to remember that Cardano’s price, like all digital assets, is influenced by a multitude of factors and is subject to market fluctuations. Therefore, investors should approach with caution, performing thorough due diligence before diving into digital asset investments.
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