Compared to rivals, the ADA price has underperformed in the last two weeks. But Cardano’s orderly climb indicates the rally is more sustainable than others.
Cardano (ADA) is slightly lower this morning and trading at $1.3434, down $0.025 (-1.84%).
Cardano is comfortably ranked as the fifth-largest crypto, with a market cap of around $43.5 Billion. This ranking looks unlikely to improve anytime soon, as the fourth-placed Binance coin currently enjoys a $12 billion lead over ADA.
Over the last two weeks, the cryptocurrency market has enjoyed its best run since May. Whilst the ADA price may not have rallied as much as rivals, including Ethereum, the nature of the 32% increase leaves it less vulnerable to a sharp correction.
The strong bounce from the July 20th lows has left many cryptos looking stretched on the upside. However, Cardano’s steady march higher has been surprisingly calm, which puts it in a better position than some.
Of course, ADA somewhat relies on the market leaders to continue higher. However, relative underperformance on the way up may lead to the opposite should the market reverse lower.
The technicals have improved considerably over the last two weeks, but similar to Bitcoin at $40,000, Cardano has struggled to clear the major overhead resistance.
However, if it does, things could improve very quickly.
Cardano price forecast
Two things are clearly evident on the daily chart. The first is a considerable trend line support below the market at $1.0230. I would view this as an essential level of support and the foundation of my bullish view.
If the ADA price continues to respect this trend line and stays above $1.0230, the positive outlook remains intact.
Secondly, above the market, a concise trend line resistance from mid-June is visible at $1.4600. This has capped recent attempts to break higher and should be considered robust resistance.
This is reinforced by the appearance of the 100-day moving average at $1.4604.
Should the price advance beyond $1.4604 on a closing basis, the bull case increases. In this event, $2.000 becomes a real possibility for Cardano.
In summary, above $1.0230, I’m bullish. Above $1.4604, I’m even more so. Although should the price drop below $1.0230, this will invalidate my bullish outlook and suggest the price will extend lower.
ADA price chart (Daily)
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