Cardano (ADA) price has seen a tremendous rise over the past two days. Technical data suggests that the altcoin’s rise may continue. However, ADA will face a significant barrier of resistance before continuing its rise.
Cardano price rose by about 28 percent after experiencing a brief period of consolidation from August 7 to August 9. The uptrend took ADA from $1.40 to $1.79 but failed to retest the $1.82 resistance level. This hurdle blocked all attempts to rise after the collapse on May 19. Therefore, surpassing $1.82 will not be easy.
Investors can expect ADA to return to the $1.65 demand barrier, which will allow buyers to rally and prepare for the next step. A sudden increase in buying pressure near $1.65 or $1.61 could restart the uptrend and could be an attempt to turn the $1.82 resistance barrier into a support base. If this move is successful, Cardano will open the way to $2 after a 10 percent climb.
Smart contracts and updates can trigger price in the long run
On the other hand, Cardano price could decline if the $1.61 support level is broken. This indicates the weakness amongst the buying pressure. This development could push ADA down into the supply zone, triggering a gradual sell-off from $1.40 to $1.50. A decisive 12-hour candlestick close below $1.40 will invalidate the bullish argument and could catalyze a drop from the $1.30 high to the 50 percent Fibonacci retracement level.Cardano must pass this critical resistance level.
Known as the potential Ethereum killer, Cardano is gearing up to bring smart contracts to the blockchain, which will increase its popularity in the DeFi space. A greener, cheaper and faster network than Ethereum, Cardano is set to grow in popularity as the leading platform supporting DeFi projects. Co-founder Charles Hoskinson confirmed in his recent Youtube post that the hard fork on the network, which will launch many new features, including smart contracts, will take place before the Cardano Summit, which is scheduled to take place in September. On Friday, the date for the HFC will be announced, and we can expect the upward momentum in the cryptocurrency to continue at least until then, and possibly beyond, as long as market sentiment supports it.
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