• Cardano price is currently grappling with a crucial level at $2.55 that can decide its fate.
  • The 10% upswing will face headwinds at the $2.74 resistance level.
  • A breakdown of the $2.40 support floor will invalidate the bullish thesis.

Cardano price is currently in a recovery phase but is hovering around a key barrier. A decisive close above this level could trigger an upswing, but a failure to do so might kick-start a downtrend.

Cardano price at make or break point

Cardano price rose 15% from the September 8 swing low to where it is currently trading, $2.55. However, the resistance barrier at $2.55 is crucial and will help ADA decide directional bias. A decisive 4-hour candlestick close above it is likely to trigger an upswing.

Assuming the bulls manage to close above $2.55, investors can expect Cardano price has a resistance-free path up to $2.74. However, overcoming this barrier and retesting the $2.82 ceiling will complete the 10% uptrend.

A resurgence of bullish momentum here could extend the ascent, but market participants can expect a minor retracement before going on another impulsive run.

ADA/USDT 4-hour chart

ADA/USDT 4-hour chart

Regardless of the optimism, Cardano price needs to overcome the $2.55 resistance barrier and flip it into a support level to have any chance at surging higher. Failing to do this could result in a retracement to the immediate support level at $2.40.

A resurgence of buying pressure at this floor could hold the key in restarting an upswing. Still, if the selling pressure pushes ADA to produce a decisive close below $2.40, it will invalidate the bullish thesis.

In such a case, investors can expect the so-called “Ethereum killer” to crash 8% and retest the support level at $2.21.

 

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