Cardano Price Prediction: Solid Base Signals return to $3.00 for ADA

Summary:

The Cardano price has been left behind in the recent crypto market rally, with ADA trading broadly sideways for three weeks.

The Cardano price has been left behind in the recent crypto market rally, with ADA trading broadly sideways for three weeks. Despite Bitcoin (BTC) surging 30% to $55k over the last week, Cardano (ADA) fails to follow suit and is stuck in a rut between $2.00 and $2.50. However, the price action has formed a robust platform that could springboard Cardano back above $3.00.

The cryptocurrency market roared back to life in October. The combined crypto market cap has increased by almost $500 billion to $2.3 trillion in the last eight days. However, ADA has underperformed the market leaders. Subsequently, Cardano has lost its third-place spot to Binance Coin (BNB), whose $74 billion market cap overshadows ADA’s $73.2b. Furthermore, whilst BTC is trading at a five-month high and closing in on May’s record, Cardano is around 28% below September’s $3.16 high. Nonetheless, the bulls should be encouraged that ADA is holding above $2.00. Furthermore, the lows are moving higher, and as a result, the Cardano price could soon clear $2.50.

ADA Price Analysis

The daily chart shows ADA is running into overhead resistance approaching the 50-day moving average at $2.47 and the former ATH at $2.51. A rising trend line at $2.07 from the July low countries the resistance, and provides the first support level. Additionally, the 100-day moving at $1.96 reinforces the robust scale-down support. As long as the price holds the trend and the 100 DMA, clearance of $2.51 looks probable. In that event, a logical target is the September ATH.

I maintain a bullish outlook for Cardano as long the price remains above $1.97. However, should ADA lose the support of the 100 DMA, the outlook becomes less clear On that basis, a close below $1.97 invalidates the bullish view.