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.
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.
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