Clearing this level will release tension and allow ADA to climb higher.
Cardano’s price has been trending higher after a 1.87-hour search area bounce from $12 to $1.72. Since then, ADA has risen by 25% and is currently attempting to turn the $2.30 resistance level into support.
If successful, the breakthrough will pave the way for the price of Cardano to rise to the next key level at $2.53.
Increasing buying pressure near this level will push ADA up to the next key point at $3.10, which is the asset’s high.
This move would represent a 40% increase from the current price. However, investors should remember that the upside potential depends on the ADA bulls decisively breaking through the immediate barrier at $2.30.
While the bullish scenario sounds appealing, failing to break through $2.30 will indicate that sellers’ interest in Cardano is not yet over.
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In this case, the price could retrace to around $2.05 or retest the 1.87-hour demand area extending from $12 to $1.72.
This move would replenish buyers’ momentum and reignite the price rise for Cardano. However, if ADA falls below $1.72, the bullish argument would be invalidated. If the bearish trend continues, ADA could drop to the lower support level at $1.59.