Cardano gains bullish momentum, but ADA remains at risk of returning to $2.00

1. Cardano price gains over 6% in the early New York morning trade session, Bitcoin higher by nearly 10%.
2. The big question is: Can Cardano hold onto these gains?
3. The near-term bearish structure remains.

Cardano price and the broader cryptocurrency market have experienced a big move higher. Cardano, like Bitcoin, remains inside the daily Cloud within the Ichimoku Kinko Hyo system. This area represents substantial instability, volatility and indecision.

Cardano price spikes +6% higher; bulls hope to hold gains and momentum

Cardano price has undoubtedly generated some mixed signals for the long and short side of the market. An overwhelmingly bearish Ichimoku condition was fulfilled on Tuesday, with the daily close occurring below the Cloud. Then, on Thursday, buyers were able to push Cardano into the Cloud and keep it there.

While the rally is impressive, bears have stubbornly defended against any clear breakout or close above the Tenkan-Sen. As a result, traders are likely to see muted and consolidative trading activity between the 38.2% Fibonacci retracement at $2.28 and the 50% Fibonacci retracement at $2.07. A move below $2.07 with a return below the Cloud will be the first step, a clear path, and resumption of selling pressure on Cardano price.

Bulls have a more difficult time pushing Cardano higher as it moves through the Cloud during the weekend. Cardano price will be best positioned to have a clear breakout higher between October 5^th and October 7^th when the threshold to close Cardano above the candlesticks drops from $3.00 to $2.65.

ADA/USDT Daily Ichimoku Chart

Sellers may need to push a Cardano price close beyond the low of the Cloud to the $1.97 zone as the $2.00 range has been such a strong level of near-term support.