Price Analysis

Will Ever Cardano (ADA) Price Break Out Of Consolidation To Reach $2.5?

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Highlights

    Cardano price is again trending within a symmetrical triangle but lower than that of the previous levels

    The squeezed rally of the asset have arisen many speculations of the asset behaving like a stablecoin without any spikes

After a notable roller coaster ride, the crypto space currently seems to have relaxed a bit. Most of the assets are currently accumulating after slightly pulling back from the higher positions. While Bitcoin, Ethereum ranged high and consolidating, Cardano appears to have inculcated a reverse trend. And hence raising the clouds of suspicion over the ADA price rally.

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The price maintained a depleting trend from the past couple of months, yet the current month trade dipped lower levels. The recent price dip has formed new resistance and support levels which are lowered at $2.02 and $1.96 resp. And now also the asset is trending within small braces or consolidating in very narrow ranges.

Also Read: The Wolves Of Crypto Street Are Here! Traders Beware!

cardano chart
Source: Tradingview

Considering the higher time frame of the trend from the beginning of 2021, the ADA price appears to have maintained a steady surge. The support levels have become substantially higher and the price rebounds whenever it hits these levels. The asset yet again slipped to the lower levels after it reached its highs.  

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Currently, the price is testing the crucial support at $2.02 after diminishing from its highs at $3. The current drop from $2.1 to $1.9 and the consolidation indicates the building strength of the rally. And moreover, the hourly chart showcases the price is trending within another symmetrical triangle after breaking down the previous one. The asset is reaching its peak of the triangle where-in the breakout is imminent. 

However, the immediate resistance at $2.02 needs to be achieved and sustained in order to march towards $2.2 levels. If in case, the assets flip and bears attempt to lower the price then the trend line may act as a huge support. The drop to these levels appears much unlikely as the Cardano(ADA) price is showcasing healthy bullish momentum. 

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Disclaimer : The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of Coinpedia. Every investment and trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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