Cardano has proven that it can defy the wider cryptocurrency market and chart a price path of its own, with a run in the past 24 hours almost pushing it to $2 again.
In the short term, technical indicators show bullish momentum, most likely to hit $2 as investors seek to finally break past the $2.4 near-term resistance.
Cardano (ADA) has become a big-game player in the crypto ecosystem this year. The crypto currently ranks fifth by market cap, slightly below Binance Coin and Tether. While it wasn’t immune to the market crash two days ago, it has shown signs of a quicker recovery than its peers, with its short rally overnight almost hitting $2 again. Its technical indicators show a bullish trend is on the cards, but analysts worry that if it fails to break past $2 soon, it will retrace to its $1.4 support level.
At press time, ADA is trading at $1.7, a mere 1.25 percent drop in the past 24 hours. However, this barely tells the story. In that time, the crypto has seen an unsustained rally that almost pushed it past $2, a level it was trading before the overall market crash on Wednesday. ADA soared to $1.94 overnight from $1.67. The crypto was unable to break past the resistance and shortly after, it shed the gains to once again rest at the $1.7 level.
On May 19, when the broader crypto market lost up to 30 percent of its value, ADA sunk to as low as below $1, falling below the 50-day simple moving average for the first time in a few weeks. Fortunately, the dip buyers were at hand, with their purchases driving up the price almost immediately to over $1.56.
Which way ADA?
The crypto is still on a descending trend line since it hit its high on May 16. Analysts believe that it’s critical for ADA to stay above this line in the short term to justify its recent rally to $1.94. If it falls below this line, the surge will prove to have been nothing more than a relief rally and it could signal a retracement to an even lower support level.
For now, the key level to look out for is the $1.63 support level, analysts point out. If the market can sustain the buying pressure it’s currently seeing for ADA, the crypto could likely track back towards the $2 level in the short term. However, if the bears take over, the crypto will likely drop to its lower support level which stands at $1.5.
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