Cardano was set for a rally towards an all-time high, but a profit booking pushed ADA price back towards $2. After a brief consolidation, the coin managed to retrace to new levels, but a strong buying sentiment helped it give a breakout from $2.40, which ADA enthusiasts expected.
At the current time frame, we consider an opportunity to accumulate before Cardano’s price flies beyond $5. One can expect the current momentum to continue with a subsequent breakout.
Cardano Price Analysis
Cardano has moved substantially in the past few days, and everyone is in a place of shock. After the current rally marking a new all-time high, expectations from ADA have increased, and more new investors are getting into ADA coin, expecting a further rally. This onslaught of investors at current price momentum will help it scale even further.
Cardano has strong support at $2.40 levels, and after hitting fresh highs, it is in dire need of consolidation. A consolidation at current levels with a strong hesitation in crossing $3.00, one should book partial profits and wait for a retracement for fresh entry. A flag and pole pattern at the current level would set the stage for further up move. On an indicative basis, the increasing volumes with the rising value signify the potential for future upside to continue.
ADA has support at $1.50 levels which comes out as the first breakout followed by the second breakout, at $2.40 levels. The support and sentiment might seem like the rally should continue, but the angle of incline is too large for a crypto asset to sustain; ADA will either undergo profit booking or consolidation for setting the stage for further momentum.
At its current value of $2.85, RSI is in overbought zones, reassuring our take that ADA needs to consolidate or there will be a profit booking. Based on our ADA coin price prediction, once it retraces to 10 – 20% below current levels, new investors will flood in and push ADA beyond the $4 targets.
On hourly charts, the support at $2.40 seems like a consolidation level, where the breakout has helped ADA push through the resistance zone with a steep incline trend line. Consolidation at current levels has an upside resistance of $3.00 with downside support at $2.90. RSI on hourly charts is fairly stronger, as it is trading at a level above 50 and has frequently tested overbought zones.