Top 3 Cryptocurrencies To Watch This Week, ADA, LUNA, ETH: Cardano Price Poised For A Fresh Run-Up?

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Last Updated May 17th 2022
5 Min Read
  • Cardano price is set for another upside leg amid a positive RSI-price divergence on the daily chart.
  • Terra’s LUNA price keeps its volatile trading intact after Do Kwon’s fork proposal, investors remain wary.  
  • Ethereum price is defending gains amid mixed technical indicators, as dominant crypto coins attempt a recovery.

A risk-on profile seen across the financial markets is boding well for the crypto board, with the recovery momentum led by most dominantly traded digital assets such as Bitcoin, Ethereum and Ripple.

The sentiment improved across the board, as traders remained hopeful for relaxation of norms in Shanghai after weeks of strict lockdowns.

Crypto markets suffered in the past weeks amid expectations of aggressive Fed tightening cycle, China’s zero-Covid policy and Terra’s debacle.

Analysts at Morgan Stanley noted: “The stock- and bond-market downturn has advanced to behavior resembling a classic cyclical bear market rather than simply a correction.” 

Let’s see how Cardano, Terra’s LUNA and Ethereum are positioned on the technical graphs.

ADA remains poised to test the bearish 21-DMA barrier at $0.70

Cardano price is looking to resume its previous week’s recovery momentum from 15-month lows of $0.384 reached on May 12.

In doing so, ADA bulls are fighting back control after a brief reversal seen on Monday, as the no. 7 crypto coin is eyeing a sustained move above the intermittent highs around the $0.60 region.

ADA traders are awaiting the confirmation of a bullish reversal, as Cardano price is adding roughly 7% on the day to now trade at $0.593.

Cardano’s technical indicators on the daily timeframe point to another upside leg in the making. This could hold true as the coin spots a positive Relative Strength Index (RSI)-price divergence, with the 14-day RSI inching higher despite the recent downtrend in the ADA price.

Cardano bulls, therefore, could see a firm break above the $0.60 round figure, which will expose the May 11 highs of $0.660.

Further up, powerful resistance at $0.70 will be put to test, which is the confluence of the bearish 21-Daily Moving Average (DMA) and the May 10 peak.

ADA/USD daily chart

ADA/USD: Daily chart

On the flip side, a drop back towards the recent range lows near $0.55 will be in the offing should ADA price fail to find acceptance above the $0.70 supply zone.

The additional downside will lookout for the $0.50 psychological support, below which the multi-month lows sub-$0.40 could be retested.

All in all, the upside appears more compelling for Cardano price, in light of the ongoing recovery in the crypto market.

Related: Cardano (ADA) Price Predictions

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LUNA price fails to capitalize on Kwon’s proposed revival plan

Terra’s LUNA price is licking its wounds around $0.000182 after stalling its recovery at $0.000249 on Monday, as it remains in a bearish consolidative mode so far this Tuesday.

Despite basing out at $0.000123 a day before, LUNA bears refuse to give up, in the wake of the previous week’s debacle.  

A week ago, LUNA crashed to its lifetime lows, losing 100% of its value after terraUSD (UST), a Terra-issued stablecoin that's meant to be priced 1:1 to the U.S. dollar, lost its peg.

Prior to the meltdown, LUNA was seen at $65 seen on May 9 and at a record high of $120 in mid-April.

Amidsts the UST turmoil, investors seem to have lost confidence in stablecoins, as well as, in Terra’s LUNA, which got delisted on the world’s largest cryptocurrency exchange, Binance.

Therefore, any of Terra’s founder Do Kwon’s proposed recovery plans seem to offer little comfort to LUNA bulls.

Kwon proposed forking Terra to a new chain that would entirely cut out its failed UST product and instead focus on decentralized finance (DeFi) applications building on Terra.

LUNA/USD 4-hour chart

LUNA/USD: Four-hour chart

The question now is, is LUNA a good buying opportunity, as Terraform Labs’ move to revive native token LUNA without stablecoin UST has met with a negative response across the crypto community.

Terra fork, which will be on the lines of the Ethereum’s hard fork of 2016, is projected to cap the total supply of the new LUNA Core chain at 1 billion tokens. This could help revive the LUNA price from the grave.

Related: Terra (LUNA) Price Predictions

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Ethereum price returns to the green but the outlook appears hazy

Having defended strong bids at the $1,700 threshold, the world’s second-most traded digital asset, Ethereum, staged an impressive upturn over the past five trading days.

The recovery from 10-month troughs lows of $1,694 is failing to find the much-needed upside traction, as ETH sellers continue to lurk around $2,150.

At the press time, Ethereum price is hovering around $2,070, adding 2.30% on the day while reversing Monday’s 6% loss. ETH bulls remain hopeful but bears are unlikely to give in that easily.

The same view is being reflected on Ethereum’s daily technical chart, as a potential bear cross challenges the positive RSI-price divergence.

The downward-sloping 50-DMA is on the verge of cutting the 100-DMA for the downside, indicating a strong bearish bias.

ETH bulls could, however, defy the bearish odds, as the positive RSI-price divergence could remain in play.

Also, Ethereum’s upside bias hinges on the overall crypto market’s mood.

On the upside, if the $2,150 resistance is scaled then ETH bulls could charge towards the next relevant hurdle around the $2,450-$2,490 region.

That area is the convergence of the downward-sloping 21-DMA, May 10 and May 11 highs.

ETH/USD daily chart

ETH/USD: Daily chart

Alternatively, failure to defend the previous day’s low of $1,976 will open floors for a test of the May 13 low of $1,936.

Daily closing below the latter will revive the bearish interests, prompting ETH sellers to target the lowest levels since July 2021 once again.

Related: Ethereum (ETH) Price Predictions

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