Technical Analysis for ADAUSD for 8th October 2021
Cardano Expands 7%, but Prices Capped below $2.3, is ADA Demand Building Up?
QCP Capital is adding ADA to its long 'gamma' fold, flipping short on ETH. They expect BTC prices to edge higher and to be the headline mover in the upcoming days.
Past Performance of Cardano
There is a movement to the upside. ADA is up roughly seven percent week-to-date, stable on the last day.
Notably, from the daily chart, the October 7 bull bar seems to be setting the pace for a possible close above $2.3, the primary resistance line.
The bar is distinguished with high trading volumes and has a broader trade range from recent bars.
What to Expect of ADA
The broader crypto community is bullish on the project.
However, there must be movement on ADA, which means a break above the immediate liquidation level at $2.3.
Triggers for this can be from Cardano onboarding more projects—mostly DeFi and NFTs--, pushing the demand for ADA higher.
On the flip side, how the primary support trend line reacts to selling pressure above $2 will also determine the strength of the underlying bullish momentum.
Cardano Price Analysis
Buyers appear to be in the driving seat based on the ADA technical analysis in the daily chart.
Even so, ADA/USDT prices are capped at $2.3 within a rising wedge.
The rapidity of the breakout above $2.3 would determine the pace of the rally towards $2.5 and $3 in the short-to-medium term.
Conversely, an unexpected dump below $2 and the primary support trend line may force ADA prices towards $1.9 or September 2021 lows.
Resistance level to watch out: $2.3
Support level to watch out: $2
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