ADA price has been stuck in a range for a long period. The token has failed to get the most out of the current crypto market rally. In early trading on Wednesday, Cardano’s native token was marginally down, losing 0.69% to trade at $2.151.
ADA’s range trading pushing it down
As the crypto market continues with its upward rally, ADA has failed to get the spark that could propel it up. With Solana coming up fast and only two positions below ADA in valuation ranking, it increases the pressure on Cardano to live up to its hype as an “Ethereum killer” .
Solana going for Cardano’s jugular
Going by its recent pace, it seems that it’s only a matter of “when” and not “if” Solana will surpass Cardano in market valuation. Such a move would not only raise Solana‘s stature as the ultimate “Ethereum killer”, but it could also massively dent ADA’s price. This is because many investors are likely to flee from ADA in favour of SOL. For ADA to survive the onslaught, it needs to break out of its current range. That would allow it to hit the uptrend before the current crypto market rally dissipates.
Technical analysis for ADA price
ADA price pattern has formed a symmetrical triangle. It needs to break out either upwards or downwards to get out of the range. For upward action, ADA/USD will need the momentum to strengthen. The Relative Strength Index (RSI) is currently at 47, which signals a near-equilibrium between the bulls and the bears.
If the momentum strengthens, ADA price is likely to rise to the first resistance at $2.197. However, for the price to break out of the current range, a stronger buying momentum will be required to push the price to the second resistance at $2.308 near the upper apex of the triangle.
Alternatively, the bears could weaken the momentum. That would result in a continuation of the previous downtrend. For that to happen, the price should breach the first support at $2.063. Such an action could lead to the breaching of the important psychological support at $2.00, with the second support established at $1.977.