With the market sentiments turning bullish, most of the assets are surging with a huge margin, with Bitcoin price surging more than 25%. The bears are currently whitewashed as ADA price’s next stop appears close to $2.5. With the next leg up, Cardano could regain its lost rank of 3 back in the cryptocurrency list.
The asset since the start of September 2021 was following an acute descending trend that was reversed with the fresh surge. Multiple patterns were formed in the due course, yet the price maintained its downtrend. The recent price movement pierced the price above the channel but failed to maintain the bullish trend.
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Currently, after breaking the channel, the price ranged a little high and before the next leg up, initiated with a small consolidation. However, the price is expected to retest the upper levels after rebounding from the upper resistance of the channel. And once the retest is successful, the price could explode with a huge margin.
As the price is struggling very hard to sustain above certain levels, a healthy consolidation is a better way amid diminished volume. Also, the selling pressure is considerably high at the press time that could also be a huge barrier to the rally. Currently, the Cardano price s having its resistance at $2.31 and support levels close to $2.
Therefore in order to maintain the bullish trend, Cardano price needs to clear the immediate resistance levels and ultimate smash the $2.5 crucial levels. And hence the path towards ATH above 0.7 could be pretty clear. On the contrary, the ADA price should also stand strong above $2 in order to nullify the bearish narrative.
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