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**Cardano (ADA) Eyes $2 Target Despite Mixed Signals at $0.73**
The cryptocurrency market is known for its unpredictability and sudden price swings, but one project has emerged as a standout performer in recent times – Cardano (ADA). After an impressive 29.81% surge in July, the asset’s current position at $0.73 presents a crucial juncture where fundamental and technical factors converge.
The ADA/USDT pair is currently trading at $0.73 (+2.5% in 24 hours) amidst mixed signals from momentum indicators. While the recent rally has been fueled by NEAR Protocol integration, increased on-chain activity, and Charles Hoskinson’s bullish projection that Cardano could reclaim its all-time high if the crypto market reaches a $10 trillion market cap, immediate price action is largely driven by technical factors.
The cup and handle pattern formation identified in late July serves as a crucial catalyst for bulls, who are now waiting for confirmation of a breakout above the 20-day SMA at $0.80. A close above this level would pave the way to target the ominous $2.4 resistance level, which aligns with the projected all-time high.
On the downside, ADA faces a critical juncture at current levels as bears await a decisive test of the $0.68 support level or confirmation that the bearish momentum divergence is indeed underway. A breakdown below this level could send ADA towards the 50-day SMA at $0.51, where strong demand has been established during previous market cycles.
ADA’s RSI currently sits at 46.91, indicating a neutral zone with neither overbought nor oversold conditions. This neutrality provides flexibility for traders as they weigh the mixed signals from various momentum indicators.
As the asset’s price action unfolds over the next 24-48 hours, investors will be watching closely for a decisive break above $0.80 or a test of the critical $0.68 support level. Any failure to move beyond this juncture could lead to increased downward pressure as the Stochastic oscillators approach oversold levels.
Traders with risk tolerance may consider a long position targeting the upper end of the Bollinger Bands (around $0.94), while others may prefer a wait-and-see approach to avoid exposure to potential losses in case the bearish momentum divergence materializes.
Source: Blockchain.News
