Cardano (ADA) is making strong gains into Monday after high volatility in the wider crypto sector saw market leader Bitcoin close in on the key $40,000 level even as promising fundamentals support investors’ upbeat mood towards the Ethereum killer. At the time of writing, ADA/USD is trading around $1.34.
Bullish moves in Bitcoin aside, one of the key drivers of the upswing in Cardano’s price is a report by City A.M. about how Amazon is planning to start accepting Bitcoin as a payment method by the end of the year, and possibly add Cardano in the future too. The development comes even as the e-commerce giant is looking into creating and launching its very own cryptocurrency and could spur mainstream adoption of digital currencies further in the coming months and years.
Meanwhile, Cardano’s founder Charles Hoskinson took to Twitter over the weekend to hint at exciting progress being made over the next couple of months, especially with the network gearing up to launch its much awaited smart contract functionality. While the blockchain has faced criticism recently for its slow progress, the company behind the network maintains its strategy of going ‘slow and steady’ towards adding new features, taking weeks and months to launch updates. Although, this is the very same reason why it enjoys so much faith from its online community as well.
The uptrend in ADA is likely to enjoy more support from a recent forecast by a crypto strategist at Morningstar, Amy Arnott, who expects Cardano to become a mainstream cryptocurrency, joining the ranks of Bitcoin and Ethereum. She shared her thoughts in an interview with the Insider, adding that the blockchain has several potential technical applications which could up the interest among institutional investors especially.
Key Levels to Watch
As we can see on the H4 chart of ADA/USD, moving averages as well as the MACDare supporting a strong bullish bias in the crypto pair while the momentum indicator points to some selling interest. Cardano’s price has broken past the pivot point at $1.16 and the first resistance level at $1.31.
Buyers look set to take ADA past the next resistance level at $1.39, which would open the door past the key $1.40 level. Further bullishness can see buyers face the third resistance at $1.62 in the near-term.