• Cardano price rallied 28% over the past two days and shows no signs of exhaustion.
  • A decisive close above $1.82 – significant hurdle – will open the path for a retest of the $2 psychological level.
  • If ADA breaks below the $1.40 support barrier, it will invalidate the bullish thesis.

Cardano price witnessed an exponential rally over the past two days and shows that it has the willpower to continue this ascent. ADA will face a crucial resistance barrier that will decide if the altcoin will head higher or pull back before continuing its leg up.

Cardano price at inflection point

Cardano price rallied roughly 28% after briefly consolidating from August 7 to August 9. The uptrend pushed ADA from $1.40 to $1.79 but failed to retest the $1.82 resistance level. This barrier prevented all the attempts to rise higher after the May 19 collapse. Therefore, breaching $1.82 will not be a cakewalk. 

Investors can expect ADA to retrace to the $1.65 demand barrier, which will allow the buyers to recuperate and get ready for the next leg-up. A sudden spike in buying pressure around $1.65 or $1.61 is likely to restart the uptrend and an attempt to flip the $1.82 resistance barrier into a support floor.

If this move is successful, it will open the path to $2, after a 10% climb.

ADA/USDT 12-hour chart

ADA/USDT 12-hour chart

On the other hand, Cardano price could turn bearish if the $1.61 support level is breached. This would indicate weakness among the buying pressure. This development could trigger a cascading sell-off that might push ADA down to the supply zone, extending from $1.40 to $1.50.

A decisive 12-hour candlestick close below $1.40 will invalidate the bullish thesis and might catalyze a descent to the 50% Fibonacci retracement level at $1.30.

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 Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Luna Classic: 10% drop then a market reversal

Luna Classic: 10% drop then a market reversal

Terra's Luna Classic price has been trading range bound for over a week. The consolidating range has produced higher highs and higher lows following each change of trend. A breach of $0.0001690 would invalidate the bearish triangle thesis.

More Luna Classic news

Shiba Inu price shows long-term investors are still buying, is a market bottom near?

Shiba Inu price shows long-term investors are still buying, is a market bottom near?

Shiba Inu price has investors honing in as the monthly settle may provide context for SHIB's future price action. The bears are clearly in control of the trend, but there are subtle signs of bullishness that should be investigated.                                              

More Shiba Inu news

Will Coinbase halting support for Ripple from its wallet result in a 16% crash in XRP price?

Will Coinbase halting support for Ripple from its wallet result in a 16% crash in XRP price?

Coinbase’s decision to halt the support came from the lack of demand, which is a step up for the crypto market. This is because every negative development in the last few weeks in space has been caused by FTX’s collapse. 

More Ripple news

Top 3 Price Prediction: The monthly settle defines the next move

Top 3 Price Prediction: The monthly settle defines the next move

Bitcoin price currently auctions at $16,419 as the bulls and bears are sparring over the mid $16,000 level on smaller time frames. During the last weekend of November, the BTC price witnessed a 3% decline.

More Bitcoin news

Bitcoin: Assessing chances of one last bear market rally for 2022

Bitcoin: Assessing chances of one last bear market rally for 2022

BTC is in a good place to trigger another bear market rally from a high-time frame perspective. This development, combined with the optimistic outlook seen in on-chain metrics, further strengthens the possibility of a happy ending to 2022.

Read full analysis

BTC

ETH

XRP