This Resistance Blocks ADA’s Path Toward $2

Cardano’s price has been following Bitcoin over the past few weeks but is yet to create a new record high.

Yet, it might do so soon if it is able to take out this one significant obstacle.

By Edris Derakhshi (TradingRage)

The USDT Paired Chart

On the ADA/USDT chart, the asset has been surging almost vertically, breaking above several resistance levels, including the 200-day moving average, which is a key trend indicator. However, the $1.2 resistance level has been preventing the market from rising further, and the price is consolidating below it at the moment.

While it seemingly creates a head and shoulders pattern, as long as the $0.75 support zone holds, the market structure will remain bullish, and a new record high will be within reach.

The BTC Paired Chart

The Bitcoin-paired chart shows an almost similar picture to that of the ADA/USDT one, with a key difference. The ADA/BTC chart creates the head and shoulders pattern above a significant level, which is the 1000 SAT area. If the neckline of the pattern, which coincides with the 1000 SAT support level, breaks down, a drop toward the 200-day moving average, located around the 700 SAT mark, will be probable.

On the other hand, if the 1000 SAT area holds, a further rally toward the 1500 SAT resistance zone would be very likely in the coming weeks.