ADA price continues to send mixed signal as it struggles to break through the long-term resistance at $2.25. ADA has remained stuck below that level 11th October. Holders of the token are hoping that the upward breakout over the past 72 hours can fuel a breach past that level. At the time of writing, ADA was trading at $2.01, after rising by $1.71% over the previous 24 hours.
The odds against Cardano
Yesterday, ADA failed to make the most of Tuesday’s and Wednesday’s gains of 2.17% and 4.75% respectively. After two days on the rise, ADA lost 3.96% yesterday. However, it began trading on a positive note on Friday, and the bulls will be hoping to sustain the upward momentum. A breach of the $2.25 level will particularly be important to signal a price rally.
The bad news for ADA this week has been its slipping down to the sixth position in the crypto market ranking. At the time of writing, Cardano has a market capitalization of $67 billion, against rival Solana’s $73 billion. As mentioned earlier, Solana’s rise past Cardano may have had some psychological impact on investors, to ADA’s disadvantage.
Technical analysis for ADA price
ADA price has recently broken from a short-lived range shown by the symmetrical triangle. The price pattern is headed upward, but still below the three-week resistance at $2.25. The buying momentum has recently picked up, with the RSI indicator showing an uptick.
With the RSI currently at 44, price gains are likely to be marginal. The first resistance is likely to be marginally high at $2.07. Beyond that point, the next resistance is likely to be near the triangle’s upper apex at $2.17. However, for ADA to break out and assume a sustained uptrend, it will have to breach the next resistance at $2.28.
Given the current momentum, downward price action is also likely to be limited. The first support will be at the psychological level at $2.00. A breach past this level is likely to be minimal, with the second support at $1.96 and the next one at $1.80.