- 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
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.
Recommended Content
Editors’ Picks
Solana price nears $60 after 6% rise in a day as institutions pour millions into SOL
Solana price trading at $58 is presently attempting to breach through the resistance level marked at $59. A rally is possible, given that SOL is witnessing a resurgence in bullishness. Month to date, Solana has witnessed inflows worth $40.2 million.
THORChain price climbs 15% as native RUNE secures self-custody wallet integration
THORChain (RUNE) price is pumping hard, recording a 15% addition to its market value on the day, alongside a 50% rise in trading volume. When price and trading volume rise in tandem, it often points to the asset gaining attention and therefore interest among buyers.
Up by 96% in a week, this altcoin is likely following Solana price rally from 2021
Solana was known as the “Ethereum killer” when it skyrocketed back in 2021; however, it did not manage to kill the DeFi home in any way. Similarly, many altcoins have since emerged that have been denoted as Solana killers, but hardly anyone has managed to do that.
Chainlink price readies for 10% gains as LINK staking v0.2 priority migration goes live
-637336005550289133_XtraSmall.jpg)
Chainlink (LINK) v0.2 migration has gone live, with the upgrade introducing a staking platform that ensures stakers enjoy greater flexibility. It also delivers improved security guarantees, a modular architecture, and a dynamic rewards mechanism.
Three key BTC accumulation levels before ETF approval in January 2024
Bitcoin, from a high time-frame perspective, has been in an up-only trend since the start of 2023. BTC has ignored many sell signals due to the likelihood of an Exchange-Traded Fund approval. With the holidays around the corner, falling liquidity could see BTC discounted from its current level, hovering around the $37,000 region.