The Cardano price rebound experienced last week has faded. ADA is trading at $2.058, which is slightly above this month’s low of $1.86. It is also about 32% below the lowest level in September this year. Its total market cap has dropped to about $65 billion, which is lower than the all-time high of $90 billion.
Explaining the ADA price action
Cardano is a blockchain project that was built by Charles Hoskinson, a former Ethereum co-founder. The platform’s goal is to help solve some of the top challenges that are faced by companies and institutions.
At the same time, Cardano’s ambitions were to become an infrastructure project that developers will use to build apps. This service is enabled by the recently launched smart contracts platform.
Indeed, the Cardano price surged to an all-time high as the developers transitioned to this technology. Recently, however, the ADA price has struggled because of the relatively low user adoption. Indeed, it is relatively difficult to find any apps built using Cardano.
This explains why Cardano has struggled in the past few weeks. While Bitcoin and Ethereum are trading at their all-time high, Cardano is about 30% below its highest level.
Cardano price prediction
The daily chart shows that that the ADA price has been in a tight range in the past few weeks. The coin has found a strong support at $1.8772, where it has struggled to move below in the past few weeks. It has also moved to the 50% Fibonacci retracement level and is slightly below the descending trendline shown in purple.
Therefore, after last week’s false breakout, the coin will likely remain in a tight range this week. A breakout will be confirmed if the price manages to move above last week’s high of $2.38. If this happens, the next key resistance level to watch at $3. On the flip side, a drop below the key support at $1.8772 will invalidate the bullish view.