The price of Cardano rose by over 25%, placing it above Binance Coin as the third most important cryptocurrency by market capitalization
Cardano (ADA) saw prices jump more than 25% on Wednesday, hitting an intraday high of $ 1.29.
Although the price of the cryptocurrency has cooled since then, with a retreat into the USD 1.27 region, the technical outlook for ADA / USD suggests that bulls have the upper hand. In that case, another move up could see the puncture resistance of the cryptocurrency at $ 1.30 and hit the all-time high of $ 1.48 reached on February 27, 2021.
Currently, Cardano has ranked third among the largest cryptocurrencies by market capitalization at $ 39.5 billion. It is in front of Binance Coin (BNB), Tether (USDT) and Polkadot (DOT).
Cardano’s rally follows news that the major crypto exchange Coinbase would list the token on the platform of their professional traders Coinbase Pro.
Cardano price analysis
ADA / USD traded between the $ 1.02 and $ 1.21 range before today’s breakout rose to $ 1.29. The range remains critical for bulls in the short term, with a possible rejection of the intraday high is likely to cause bulls to settle within the range.
Buyers try to consolidate profits across the region (indicated by the rectangle). If they manage to push higher, ADA could retest prices at $ 1.31.
The RSI is above 60 and the slope curves of the simple 20- and 50-day moving averages suggest that the upward path is very likely on the table.
A key break above this level would open a potential short-term spike to the all-time high of $ 1.48, with further gains likely as Cardano nears its next major network upgrade called Goguen.
ADA / USD daily chart. Source: TradingView
If bulls fail to build support above $ 1.20, a break in the above area could be the first step in taking a short-term rally to a new high.
In this case, the first level of support is at 20 SMA ($ 1.17). Bears can then attempt to target the $ 1.02 price level that forms the basis of the most recent trading range.
A successful breakdown past the $ 1.00 psychological level would welcome further sell-off pressures as the bulls would be forced to defend gains at 50 SMA ($ 0.91). An extended correction should see ADA prices drop to a support level of $ 0.80.
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