Cardano(ADA) Price Above $1, Is it an Indication of a Recovery or Yet Another Fake-out?

Cardano price is attempting to break the huge descending trend and is on the verge to form a strong bullish green candle ever since it reached the highs in September 2021. Interestingly the buying volume has increased drastically which is attempting the price to get settled above the immediate resistance levels. However, no uptrend can be sustained until the ADA price reaches $1.5 levels. Nevertheless, sustaining hard at current levels and a daily close above $1.2 may keep up the hopes alive. 

All it started when IOHK proposed a parameter update before the weekend which will increase the per block Plutus script memory units. This change was implemented with immediate effect, intending to increase the netwrok capacity. Due to the extensive volume of DeFi and NFTs on Cardano, the transaction volume has shot up to its peak. And hence this upgrade was necessary to make Cardano more scalable than before. 

Some moments later, the Cardano gained huge bullish momentum and jumped into action surging extremely high. Moreover, the possibility of a strong trend reversal also surfaces that may prevent the asset to display another fakeout. 

As per the data from the santiment, the ADA whale profit-taking ratio is been suppressed for a very long time. And hence the current surge may be considered as one of the bullish signals which may set up a strong bullish week after a pretty long time. Yet it may be still a tedious job as the possibilities of the price slipping below $1 are still not faded away. 

With the sudden surge, the ADA price raised extremely high within a massive rising wedge. And hence after reaching the apex, the Cardano price may be primed to hit the immediate lower support Currently the support levels are around $1.03 which do not appear to be strong. Therefore, a wrong move here may lead the price to slide down back below $1 within no time.