ADA price was marginally high in early hours of trading on Monday, as it gained 0.85% in 24 hours to trade at $1.98. Cardano is still struggling to recover from a long period of underperformance that saw it trade in range for almost the entire October.
Prior to that, ADA price had been on a downtrend for the most part of September. This has seen the asset lose market momentum, effectively missing out on the recent crypto market bull run. ADA’s RSI has been below 50 for much of the last two months. That underlines the sharp decline in buyer interest in the asset.
Despite its woes in the marketplace, ADA is still up by about 1,500% year to date. Going forward, Cardano is counting on its Alonzo protocol upgrade to augment its market share. In addition, the upcoming Mamba and Plutus (due in November) improvement are the next upgrades designed enhance its ecosystem and win more investors. The outcome of its investments in Africa could help propel it higher in the long term.
ADA price has recently broken out of its sideways action .The asset had formed a symmetrical triangle and the breakout happened to the lower side six days ago. ADA is trying to retrace its way back to the previous trajectory. However, the price action over the past five days indicates that ADA could trend sideways for much of the near-term. The momentum is currently weak, with the RSI at 40 at the time of writing. This is likely to result in a near-equilibrium between the bulls and the bears, hence the continued range trading.
Based on the current momentum, any upward price movement is likely to encounter the first and second resistance within small margins of the previous range. The first resistance is likely to be along the apex of the triangle at $2.15 and the second one is likely to come $2.25. If the momentum weakens further, the price could breach the psychological support at $2.00 to find the first support at $1.91. Further losses past that point may see the next support established at $1.82.