Many cryptocurrencies had a difficult month in September 2021, with regulatory scrutiny of DeFi projects. Bitcoin values plummeted this week when China announced a blanket ban on the currency, causing havoc not only in the Chinese market but also in worldwide markets.
The price of Cardano, as well as the entire cryptocurrency market, has risen dramatically. Cardano’s price has clearly sent out confusing signals to both long and short traders.
📈 #Crypto Markets Have Taken Off To Kick Off October. Price Spikes For #Bitcoin (Back Above $47k) And #Ethereum (Back Above $3.2k) Came Immediately Following Crowd Discussions Related To #Shorting. As Always, Markets Follow The Crowd’s Least Expectations. Https://T.Co/RyS39K4mom Pic.Twitter.Com/PyrEy3ZmYR
— Santiment (@santimentfeed) October 1, 2021
On Thursday, Cardano, which had been trading below its new all-time high for the better part of September, lost its position as the third-largest cryptocurrency by market cap. Tether has climbed back to third place as the market struggled.
Cardano has started a new rise, putting it safely above $2. The digital asset had taken a beating in previous weeks, prompting this current move. At the time of writing ADA is trading at $2.23.
In early September 2021, the altcoin reached an all-time high of $3.10. The price of ADA increased by roughly 8%, breaking through the $2.2 resistance for the second time.
Bears continue to haunt ADA recovery until the asset finds its footing following the steep price surge. If the asset is to continue its march towards $2.5, it must maintain its grip on the $2.2 trading range. On the downside the support levels are at $2.13 and $2.03.
The more likely scenario is a test of the liquidity level at $2.40, followed by a drop as bulls try to maintain their momentum.
Cardano (ADA) has stabilised above the critical $2 mark, indicating that buyers remain in control of the situation. Similarly, throughout the next two weeks, there is a potential to test the mirror level at $2.70.
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