Before the crypto crash this week, Cardano had shown outstanding upward momentum. The coin at one time even rallied by nearly 50% in less than a week. But as weakness sips through the market, all these incredible gains have now reversed. Despite this, ADA has managed to establish a strong trading range. Here are some highlights:
- ADA has traded between $0.47 and $0.55 over the past few days
- This Range Will Likely Hold As The Broader Crypto Market Recovers Slightly
- Cardano, however, faces a very limited upside to overcome the $0.55 barrier.
Where will ADA go from here?
The trading range established by ADA over the past few days represents short-term support and resistance. It is likely that the coin will trade within this range for days before it finds direction.
However, we don’t see many downsides. In fact, if ADA were to lose the $0.47 support, it could still find plenty of resilience at $0.435. This is actually a longer term support zone for the coin. Additionally, if there is a period of price consolidation above $0.55, we could see a short-term rally for ADA.
But it doesn’t seem like the coin has so much room to run. In fact, the best-case scenario for bulls would be to try and reclaim the highs of $0.77. Here, ADA will face major sell-off pressure and will likely retreat even before it attempts to test $1.
When will ADA get back above $1?
It seems like just yesterday when we were all watching ADA above $1. The coin was expected to reach at least $5 by the end of the year. However, this is now highly unlikely as ADA would need to grow more than 10x to reach this estimate.
But a return above $1 is not out of the cards. Sentiment will however need to improve drastically over the month ahead for this to happen.