Cardano Price Analysis: This Resistance Blocks ADA’s Path Toward $2

As a seasoned researcher with a knack for deciphering market trends and patterns, I find myself closely watching Cardano (ADA) these days. My years of trading experience have taught me to always keep an eye on significant resistance levels, such as the $1.2 mark on ADA/USDT, which seems to be acting as a roadblock for now.

Over the last few weeks, Cardano’s value has mirrored Bitcoin‘s trend, however, it hasn’t set a new all-time peak just yet.

Yet, it might do so soon if it is able to take out this one significant obstacle.

By Edris Derakhshi (TradingRage)

The USDT Paired Chart

On the graph showing ADA/USDT, the asset has been climbing rapidly, bursting through multiple barriers, such as the 200-day moving average, a significant trend marker. Yet, the $1.2 barrier has so far hindered further market advancement, and currently, the price is gathering strength below this level.

While it seemingly creates a head and shoulders pattern, as long as the $0.75 support zone holds, the market structure will remain bullish, and a new record high will be within reach.

The BTC Paired Chart

The Bitcoin-paired chart shows an almost similar picture to that of the ADA/USDT one, with a key difference. The ADA/BTC chart creates the head and shoulders pattern above a significant level, which is the 1000 SAT area. If the neckline of the pattern, which coincides with the 1000 SAT support level, breaks down, a drop toward the 200-day moving average, located around the 700 SAT mark, will be probable.

On the other hand, if the 1000 SAT area holds, a further rally toward the 1500 SAT resistance zone would be very likely in the coming weeks.

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2024-12-16 17:26