Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
While Cardano’s price was trading sideways for over a week, the last 48 hours saw the cryptocurrency hike in what was an exhibition of bullish momentum. The said hike enabled ADA to head towards its immediate resistance, with the cryptocurrency attempting to breach the said level at press time.
At the time of writing, ADA was trading at $1.43 with a market cap of over $45 billion. In the last 7 days, the coin has managed to see a price hike of over 25 percent.
Cardano 1-day chart
Source: ADA/USD, TradingView
The price of Cardano has traded within a tight range over the past week. As pointed out, the last 24 hours saw a lot of bullish momentum that pushed ADA’s value up by over 11 percent on the charts.
At the time of writing, the altcoin was attempting to breach the resistance level at $1.51 and if the bulls are able to push the price past this range, then ADA can enjoy quite a bit of price discovery over the coming week and establish a new ATH by quite a margin.
However, in the next 24-48 hours, if this rally doesn’t fully materialize, the altcoin may be susceptible to a drop towards its support level at $0.93, one resulting in a massive 34 percent drop in trading price. In fact, there was also another support at $0.76 for the coin.
At press time, a bearish scenario for ADA seemed very unlikely. The coin had significant bullish momentum behind it and hence, short positions didn’t seem very ideal.
Rationale
ADA’s technical indicators illustrated the bullish sentiment backing ADA’s price hike. The Stochastic indicator underwent a bullish crossover, with the same moving well into the overbought zone.
Given past precedents, this is a very bullish sign. The MACD concurred as its Signal line was well below the MACD line.
Conclusion
Cardano’s price has been rising quite steadily on the charts over the past few months. While the coin has had to endure its fair share of sideways movement, its most recent bullish push may fuel price discovery past its ATH.
However, if the press time level of resistance fails to be breached, then traders can expect a dip to its immediate support at $0.93.
