Cardano gearing up to position itself as an Ethereum rival with new developments has made a complete turnaround for this cryptocurrency. Within days of launching country-level meetups through Cardano Summit 2021, it has placed a good marketing strategy. As more and more people learn about the capabilities and possibilities in ADA cryptocurrency, it will be gaining higher highs.
ADA positions itself among the top three cryptocurrencies, with a circulating supply of 71.14% coins summing up for a market capitalization of $94.4 billion. Cardano briefly touched the $3 milestone on September 02 and closed the day with a gain of 3.16%.
The stronger price action, growing inclination towards new-age cryptocurrencies, and marketing strategies have enabled Cardano to grow exponentially since the ADA price fall of July 2021. Cardano marks a total gain of 208% in such a short time frame.
Cardano Price Analysis
The 16% spike on a single day led to some downside consolidation creating a flat bottom chart pattern that made it harder to comprehend upside movement. What followed is small buying patterns taking ADA to retest the earlier high levels of $2.97, prompting a huge jump and creating a new high of $3.10. The market is in a highly bullish zone and has met some profit booking again.
Every indicator, be it RSI, MACD, volume, or Bollinger bands, indicate a higher trading potential of Cardano. Ideally, it’s a great time for people already invested, but those expecting the 200% gain over the last few weeks to replicate will be in a tight spot. Every time a cryptocurrency has made a new high, there has been a continuation of the uptrend after a brief pause.
In this case, one should wait for consolidation before making a fresh entry. Cardano, having a total currency supply of 45 Billion, has no shortage of coins. Hence a sudden spike is highly unlikely. One should look out for smaller trading volumes to book partial profits.
On the downside, ADA has strong support at $2.50 levels, while there is absolutely no resistance up the upside in terms of price action. Since ADA is trading at close to 80% upwards of its 100 DMA, there is a huge potential for a longer consolidation.