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Cardano briefly reached $1 in mid-August to the delight of bulls, building on a rally that initiated after late July's sell-off.
However, as soon as ADA's price reached $1, it couldn't sustain momentum and retreated afterward. This was followed by consistent attempts by the bulls to hit $1 in the days that followed, but these stalled just above $0.90.
This trend continued until this week, when markets plunged in response to macroeconomic uncertainty, wiping out millions in long liquidations at the start of the week.
Cardano reacted with a major two-day drop from the Aug. 17 high of $0.987 to a low of $0.843 on Aug. 19. The markets, however, failed to gain momentum with the ADA price dropping to a low of $0.8215 on Friday, from where it sharply rebounded.
Cardano to $1: What's left?
Cardano sharply rose from a low of $0.8215 to $0.9415 on Friday after Federal Reserve chief Jerome Powell signaled the central bank may not wait for perfect inflation before reducing interest rates.
Momentum indicators such as the daily RSI have flipped into the positive zone, hinting at a slight edge for bulls, although the likelihood of consolidation remains before a decisive move.
En route to $1, Cardano appears to be forming a resistance zone above $0.9, in the range of $0.93 to $0.99, as seen in multiple retests since Aug. 15.
For Cardano to achieve $1 and above, this resistance range needs to be squashed with enormous buying pressure. On the other hand, major support is envisaged at the daily SMA 50 at $0.79 in the event of a drop.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team