According to U.Today, Cardano (ADA) has experienced a notable resurgence, climbing 8% to reclaim the $1 mark. This recovery comes as part of a broader rebound in the cryptocurrency market following a significant downturn earlier in the week. On Monday, cryptocurrencies, including Cardano, faced a severe shakeout, with ADA plummeting 15% within 24 hours. This drop led to one of the largest leverage flushes in recent years, resulting in the liquidation of nearly $1.5 billion in bullish derivative positions. As of the latest update, several cryptocurrencies have returned to positive territory, ahead of the anticipated release of U.S. inflation data.
The market is keenly observing whether ADA can sustain its upward momentum and surpass key resistance levels. Earlier in the week, ADA experienced a sharp decline, reaching lows of $0.911 during Monday's trading session, marking a three-day downward trend. However, prices began to recover on Tuesday, bouncing back from a low of $0.93. At the time of reporting, ADA had increased by 10% over the past 24 hours, reaching $1.08, with intraday highs of $1.09. If ADA continues to hold above the $1 threshold, it could attract additional buying interest, potentially leading to a rise towards higher resistance levels around $1.20.
A breakthrough above the $1.25-$1.33 resistance zone could signal the continuation of the upward trend, with ADA possibly climbing to $1.64, a level expected to serve as strong resistance. However, potential profit-taking and future market downturns could pose challenges to this advance. Maintaining the $1 support level is crucial for sustaining the upward trajectory. A drop below this level could lead to a decline to $0.87, which might delay the onset of the next phase of the uptrend.
