Cardano Price Consolidation Underway: What’s Next?

Cardano is trading somewhat cautious on Tuesday after enjoying a bullish move through the previous session, when it strengthened by more than 10% and marking its highest single-day gain since late March. At the time of writing, ADA is trading around 1.30.

After a rally over the weekend which spilled over into Monday as well, Cardano’s price appears to be consolidating around the 1.30 level for now. However, technical and fundamental analysis points to more upside momentum in this cryptocurrency over the coming sessions, which could very well drive its price higher soon.

For now, ADA/USD encounters its immediate resistance around the 1.34 level – a break above this can signal further strength in the bullish momentum and drive its price higher. However, if the resistance holds and the price is unable to break past the point, sellers could take charge and drive Cardano (ADA) down towards the 1.20 level.

What gives Cardano an edge over its rivals?

Although a relatively new entrant into the world of cryptocurrencies, Cardano’s popularity has been on the rise as a possible alternative to Ethereum for supporting DeFi projects and decentralized apps (DApps). Last week, the developers behind this blockchain network announced that it would be capable of handling smart contracts by August, which would certainly give it a further boost in going up against Ethereum.

The outlook for the Ethereum killer is certainly bullish, especially on account of the high level of engagement within its community, even though it has a smaller team of developers working on improving its functionality and adding more features, unlike its closest rival Polkadot (DOT). The Cardano community remains optimistic that its lower transaction fees and higher speed to process transactions can take away more users from the Ethereum network in the near future.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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