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 5th and October 7th 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.

Like this article? Help us with some feedback by answering this survey:

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Omicron crypto surges over 200% after being named as new COVID-19 variant

While cryptocurrency prices retraced after the new coronavirus variant Omicron emerged earlier this week, the digital asset with the same name gained popularity and surged over 200%. The small-cap crypto describes itself as a decentralized reserve currency on the Abribtrum Network.

More Cryptocurrencies News

SafeMoon price dips into buy zone, hints at the start of an 80% bull run

SafeMoon price saw its uptrend face a massive blockade, triggering the start of a huge pullback. Due to the retest of a bullish zone, market participants can expect SAFEMOON to restart its bull rally. SafeMoon price rose 484% from its low at $0.00000104 to $0.00000609 in a month.

More SafeMoon news

Basic Attention Token bucks downtrend with explosive rally to new all-time high

Basic Attention Token has snubbed the crypto downtrend and hit a new all-time high above $1.90. Brave browser has crossed 42 million active users, and BAT token utility is on the rise. Analysts predict a rally in the token.

More Cryptocurrencies news

Vitalik Buterin announces Ethereum scaling roadmap using the Graph protocol

Ethereum co-founder Vitalik Buterin revealed a strategic roadmap to expand the available data space for rollups using Graph protocol. The token’s trade volume has increased, and analysts expect an upwards move in GRT price. 

More Ethereum news

Black Friday 2021 Discounts!

Do you want to take your trading skills to the next level? Now you have a chance of leaping forward at attractive introductory rates. For Black Friday, FXStreet is offering discounts of up to 50% on its upgraded Premium plans. 

Subscribe now!