After spending the past week on the uptrend, ADA price has found stability above the $2 mark. At the time of writing, it was down by about 2.3% and was trading at $2.21. ADA has struggled to find stability above $2.35 over the past two months.
ADA/USD has risen by about 8.4% in the past seven days. This has helped it recapture its fourth spot ranking in the crypto market. It had lost its spot to Solana, as SOL surged to multiple all-time highs over the past three weeks.
Cardano must end its “arrested development” to reach its potential
Based on its current price, ADA is about 27% off its all-time high. Considering that it has only grown by 2% over the past month, the odds seem unsurmountable. Cardano’s Alonzo Upgrade was expected to propel its growth faster than what we’ve experienced so far. It aims to take on Ethereum with its smart contracts capabilities.
However, investors seem to have been less enthusiastic about the upgrade than anticipated. If it can break out of its “arrested development”, then it could truly pose a threat to Ethereum. Based on its sustained uptrend between July and September, ADA has proven that it has what it takes to soar.
Technical analysis for ADA price
ADA price is currently on a relatively strong buying momentum. The RSI is currently at 58. For the ADA/USD pair to rise, it would need the buying momentum to grow. If the buyers take control, they are likely to push the price to the first resistance at $2.27. However, they would need a stronger momentum to breach the next resistance at $2.32. That would signal a breakout from the two-month barrier. The MACD line is above the signal line, which shows a strong momentum.
A break beyond that point could trigger a price rally. However, if the momentum weakens, the price could head down to find the first support at $2.17. If it breaches that level, the next support is likely to be at $2.12.