Cardano’s price increased by over 25% to see it move above Binance Coin as the 3rd most valuable cryptocurrency by market cap
Cardano (ADA) saw its price spike by more than 25% on Wednesday, hitting an intraday high of $1.29.
Although the cryptocurrency’s price has since cooled off with a retreat to the $1.27 region, the technical outlook for ADA/USD suggests bulls have the upper hand. In this case, another leg up could see the cryptocurrency puncture resistance at $1.30 and target the all-time high of $1.48 reached on 27 February 2021.
Currently, Cardano has moved into the third spot among the largest cryptocurrencies by market cap with $39.5 billion. It is ahead of Binance Coin (BNB), Tether (USDT) and Polkadot (DOT).
Cardano’s rally follows news that the major crypto exchange Coinbase would be listing the token on its professional traders’ platform Coinbase Pro.
Cardano price analysis
ADA/USD traded range-bound between $1.02 and $1.21 before today’s breakout surge to $1.29. The price range remains critical for bulls short term, with potential rejection from the intraday high likely to see bulls settle inside the range.
Buyers are trying to consolidate gains above the region (marked by the rectangle). If they succeed to push higher, ADA could retest prices at $1.31.
The RSI is above 60 and the upsloping curves of the 20 and 50-day simple moving averages suggest that the upside path is very much likely on the table.
A decisive break above this level would open up a potential short-term spike to the all-time high of $1.48, with further gains likely as Cardano moves closer to its next major network upgrade called Goguen.
ADA/USD daily chart. Source: TradingView
If bulls fail to establish support above $1.20, a dip into the aforementioned range could be the first step towards derailing a short-term rally to a new peak.
In this case, the first support level lies at the 20 SMA ($1.17). Bears can then look to attack the $1.02 price level that forms the base of the recent trading range.
A successful breakdown past the psychological $1.00 level would welcome further sell-off pressure, with bulls forced to defend gains at the 50 SMA ($0.91). An extended correction is likely to see ADA prices fall to support levels at $0.80.
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