Cardano is one of those altcoins that actually managed to go the way. In fact, the network is on the way to rolling out smart contracts with Alonzo by October 2021. However, has the price of the altcoin actually kept pace with its growing popularity? Based on the recent market rally led by Bitcoin, the answer appears to be negative. So will it be possible to catch up? Or is it going the other way?
Cardano to Bitcoin?
Despite the fact that BTC was up 35.4% after this week’s rally at press time, ADA was only up 22.4%. Bitcoin managed to break its Fibonacci bull market doors, a level below which BTC consolidated for over a month. When the price of BTC hit $ 40,000, it broke the door’s resistance and traded above it, albeit briefly.
However, according to Dan Gambardello, that sudden spike will require an appropriate correction that could force Bitcoin to make higher lows. In fact, these higher lows could form in the $ 31,000 to $ 32,000 range.
Such a correction would put Bitcoin on the path to steady growth. In addition, the 20-week moving average serves as a breaker level for the king coin. In order to register a strong bull run, BTC needs to convert it into support.
Cardano, however, seemed to be going in a completely different direction.
Important Cardano Levels to Look Out for
It has been observed that ADA’s price movement jumps after every hard fork. All the upgrades that came to the network came with a bull run. With the Alonzo hard fork on the way, something similar might be possible. Cardano price could enter the bull market pattern its charts previously showed and ADA may begin moving north.
This would place the next critical resistance at $ 1.3-1.4. When these levels get very close to you, you should know why it will not be easy for ADA to break through them.
Since Cardano couldn’t keep up with Bitcoin, it couldn’t break its own bull market door either. ADA was already trading within a descending macro triangle, and as it eventually broke out, it was retesting the upper trendline for support at press time.
If it falls back into the structure, there is no telling whether it can come out or not. While a slight correction would be considered normal, the on-chain metrics painted a slightly different picture.
In fact, despite the above increase, the real volumes of the cryptocurrency have continued to decrease by 22.4%. In addition, the level was last seen in November 2020.
Since investor sentiment is already consistently negative, this retracement makes sense. Should this continue to be the case over the long term, critical support levels would be set in the range of $ 1.10 to $ 1.16.