Cardano Rebounds Towards $2.5 To Reclaim 3rd Spot From Tether, How Long Can It Hold?
Cardano has begun another rally that has positioned it comfortably above $2. This recent change comes after the digital asset had taken a beating down over the past few weeks that has placed it in a continuous downtrend. Cardano was not isolated in this as the broader crypto market had seen numerous crashes and dips that dragged their value down. But as the trading day draws open on Friday, the crypto market has made significant recoveries that have pushed the market back into the green.
In the early hours of Friday, ADA price climbed about 8% to once again break the $2.2 resistance. The brutal September market saw the asset close out the month trading as low as $2.02, imposing significant sell pressure on the market. The asset remains neutral on the 50-day moving average and is down on both the 5 and 20-day moving averages.
Related Reading | EMURGO To Invest $100 Million In Cardano To Bolster DeFi Adoption
Indicators point to a test of the $2.5 resistance point if current momentum keeps up. With the new month starting with a deviation from September trends, a balancing out can be expected while the price rediscovers a bounce point to kickstart another rally. As the market opens up for the first trading day of October, it will be a tug-of-war between bears and bulls as each side struggles to swing the price its way.
Cardano Shrugs Off Bears And Reclaims 3rd Position
Cardano which had traded lower than its new all-time for the better part of September had finally lost its footing as the third-largest cryptocurrency by market cap on Thursday. As the market suffered, Tether had bounced back up to the third position while BNB and ADA traded in the red. But this take-over was destined to be a short-lived one.
Hours after Tether had taken the third spot, the market had begun another recovery. Top coin Bitcoin had recorded a recovery of up to 10% and the altcoin market was quick to follow its lead. The market cap of ADA shot up along with its growing prices, bringing its total market cap back up above $70 billion. Pushing Tether back down.
ADA price falls from $2.24 | source: ADAUSD on TradingView.com
ADA recovery still remains threatened by bears until the asset finds its stronghold following the sharp increase in price. Maintaining its hold at the $2.2 trading range is crucial if the asset is to continue its ascent towards $2.5.
Cardano is trading at $2.21 at the time of writing, losing about 2% of its recovered value in the early morning. The market cap currently sits at $70 billion with a 24-hour trading volume of $2.8 billion.
Featured image from CoinCodex, chart from TradingView.com