Cardano Outlook (ADA): Signals indicate that the momentum may bounce back soon.

Cardano (ADA) is currently trading at the 0.80 USD mark on Wednesday, facing challenges from the (EMA) 100-day exponential moving average. The stability of this altcoin is bolstered by a strategic partnership with Google Cloud, aimed at building a digital system that enhances privacy and employs zero-knowledge technology. Additionally, on-chain data also records positive signals as selling pressure gradually decreases, while the percentage of profitable ADA supply continues to rise.

Midnight Network reaches a partnership agreement with Google Cloud

On Tuesday, Midnight announced a partnership with Google Cloud to accelerate the development of digital infrastructure. Not only does Google Cloud provide a networking platform, but it also offers (Confidential Computing), a threat monitoring system from Mandiant, along with a credit package worth 200,000 USD to support developers through the Web3 Google for Startups program.

This agreement is expected to breathe new life into the Cardano ecosystem, opening up opportunities for the developer community to build more groundbreaking applications, meeting the needs of both individual customers and businesses.

On-chain data shows that selling pressure is weakening

In the context of the new cooperation, data from Santiment shows that selling pressure is clearly easing. The Realized Profit/Loss index on the network (NRPL) has dropped sharply to 1.53 million ADA, compared to the 33.71 million ADA recorded on Tuesday. This trend reflects that the wave of profit-taking has subsided, thereby reducing the risk of an oversupply situation in the short term.

Supporting that positive trend, the total supply of ADA that is profitable has risen to 69.69%, a significant increase from the weekly low of 63.63% last Friday.

The NRPL index of ADA | Source: Santiment## Cardano is poised for a breakout

Cardano is currently maintaining around the 100-day EMA at 0.8055 USD, after forming a Doji candle on Tuesday. This movement reflects a remarkable recovery from a 2% fall on the same day, coinciding with the announcement of a strategic partnership with Google Cloud. This is also the third consecutive sideways session, following a 3.55% increase on Sunday.

Technical signals on the daily frame indicate that selling pressure is gradually weakening. The RSI index is flat at 43, bouncing from the oversold area, while the MACD line is approaching the signal line and may soon create a bullish cross – a factor reinforcing expectations for a new upward movement.

ADA/USDT daily chart | Source: TradingViewIn the bullish scenario, ADA will face two important resistance levels: Fibonacci 50% at 0.9182 USD (from the peak of 1.3264 USD on 3/12 to the bottom of 0.5100 USD on 22/6) and Fibonacci 61.8% at 1.0145 USD.

Conversely, if it does not hold above the 100-day EMA at (0.8055 USD), the price risks falling back to the 200-day EMA at 0.7697 USD.

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