Cardano has started another rally that has positioned it comfortably above $ 2. This recent turnaround comes after the digital asset has taken a beating in recent 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 falls that dragged its value down. But as the trading day opens on Friday, the cryptocurrency market has made significant rallies that have pushed the market back to green.
In the early hours of Friday, the ADA price was up about 8% to break the $ 2.2 resistance once again. The brutal September market caused the asset to close the month trading as low as $ 2.02, imposing significant selling pressure on the market. The asset remains neutral at the 50-day moving average and is lower at the 5 and 20-day moving averages.
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Indicators are pointing to a test of the $ 2.5 resistance point if the current momentum holds. With the new month starting with a deviation from the September trends, a balance can be expected as the price rediscovers a bounce point to start another rally. As the market opens for the first trading day of October, there will be a tug of war between bears and bulls as each side struggles to change the price in its own way.
Cardano shrugs and regains third position
Cardano, which had traded below its new high for most of September, finally lost its position as the third-largest cryptocurrency by market capitalization on Thursday. As the market suffered, Tether had rallied to third place, while BNB and ADA were trading in the red. But this takeover was meant to be short-lived.
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Hours after Tether ranked third, the market had started another rally. Bitcoin, the main currency, had posted a recovery of up to 10% and the altcoin market was quick to follow suit. ADA’s market capitalization skyrocketed along with its soaring prices, pushing its total market capitalization above $ 70 billion. Pushing Tether down.
The price of the ADA falls from $ 2.24 | source: ADAUSD at TradingView.com
The ADA rally continues to be threatened by bears until the asset finds its strength following the sharp rise in price. Maintaining your grip on the $ 2.2 trading range is crucial if the asset is to continue its climb towards $ 2.5.
Cardano is trading at $ 2.21 at the time of writing, losing about 2% of its recovered value first thing in the morning. Market capitalization currently stands at $ 70 billion with a 24-hour trading volume of $ 2.8 billion.
Featured Image from CoinCodex, Chart from TradingView.com