Concept of Cardano coin Levitating over world network, a Cryptocurrency blockchain platform , Digital money

ADA Price on A Recovery Path As It Eyes Breakout

ADA price started the day on Wednesday with a significant spike, as the token gained 6.89% in 24 hours to trade at $2.106 at 0818GMT. Cardano’s native token has been trading in the range since 2nd October and this was the clearest indication yet that it could soon break out. Notably, today’s was the highest 24-hour gain since 22nd September.

Solana’s rise poses a new challenge

Cardano faces existential threat from Solana, as the race to become the ultimate “ Ethereum killer” heats up. Solana soared past Cardano on Wednesday, as it set a new all-time high to take the fifth spot in cryptocurrency market capitalization ranking.  That move seems not to have affected ADA significantly so far. However, it could potentially sway more investors towards Solana at Cardano’s expense.

Ongoing projects to sustain ADA

In the meantime, Cardano continues to improve its ecosystem, with the Hydra project expected to bring in more investors. In addition, Cardano’s projects in Ethiopia and South Africa are on course and could help solidify its revenue base in the long term. However, the Ethiopian project faces imminent threat following the ongoing political unrest in the country. That could hinder its growth prospects for the unforeseen future.

Technical analysis for ADA price

ADA price has recently formed a symmetrical triangle and has broken out toward the upward direction. This is supported by growing market momentum, which has seen the RSI rise from 32 to 50 over the past one week.

With the current momentum, further gains look more likely. If the buyers sustain the momentum, the price is likely to rise to the first resistance at $2.179. Beyond that point, the next resistance is likely to come at $2.281. The ADA/USD pair is likely to find its short-term support at $2.114. Breaking past that point would mean breaching a psychological support. That could send the next support further down to $1.805.

ADA/USD daily price chart