Cardano (ADA) Takes Support to Breach the $2.40 Resistance Level

Despite holding on to the fourth position, Cardano faces stiff competition from Tether and Solana, which are trading with a market capitalization of $73 billion compared to that of ADA of $74 billion. Comparing the price over the last two months, ADA is certainly in a bad spot with 12% negative returns on the charts. Since BNB rose to new highs with a consistent trend taking cues from ETH and BTC, ADA has a very small probability of becoming more valuable than BNB.

Solana catching up to Cardano could have a negative impact as investors can transition from ADA to SOL, or maybe a lot of them already have. Since Solana has been a very aggressive entrant into the top 10 cryptocurrencies, ADA needs to show strength before it is overpowered. 

Cardano Price Analysis 

Cardano has been under selling pressure ever since hitting its all-time high value of $3 in September 2021. Sustaining above $2.40 is imminently required for pushing its value upwards. 

Cardano Price Chart

While other cryptos have been performing and climbing in valuation, ADA has been battling selling pressure while attempting to protect the $2.00 value. Since hitting $2 in September, the level of $1.90 has emerged as support but doesn’t offer strong support from current levels. Valuations have attempted to breach the resistance zone of $2.33, but until this level is cleared with a breakout pattern, there is a higher probability of the price remaining trapped within a narrow zone. 

Despite trading in a negative zone, the prices remained strong as Cardano held the 200 DMA curve intact. The current bounce back from the $1.80 level indicates a strong possibility of breathing the upcoming resistances. The all-time high thus becomes a strong resistance level which can ignite another profit booking session.

Combining RSI, transaction volumes, and Cardano coin price prediction, we expect ADA to target $5 once the buying sentiment returns to this cryptocurrency. Even on hourly charts, the rejection zone stands strong; hence be cautious of entering before a breakout. Once a breakout has been created, the limitation to ADA prices will be a fresh all-time high. 

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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