The lack of momentum on the ADA counter has slipped from the third spot to the fourth. Cardano is behind Binance Coin by roughly $1 billion. While USDT cryptocurrency is behind ADA by $2.8 billion. These values indicate a tough battle amongst these three cryptocurrencies for the third position. Despite offering modern technology and scalability solutions, Cardano is far behind Ethereum.
This brings to light the higher possibility on ADA’s part to reclaim the third position and probably make an attempt towards the second spot in the future. Furthermore, since the rumored switch for Ethereum is delayed, and the decentralized cryptocurrency network has been doing rounds, both BNB and ADA have a higher probability of scaling.
Although ADA and BNB have no direct competition, the valuation has remained close throughout the last few years. Of the total supply of 45 billion coins, roughly 71%, amounting to 32 billion coins, are currently in circulation.
Cardano Price Analysis
Cardano has entered into a consolidation zone with no winner among buyers or sellers. Despite trading above its 200 DMA levels and having a clear positive bias, the trend is headed towards consolidation.
ADA can be seen consolidating at a narrow level, waiting for a clear breakout in either upside or downside. $1.905 has emerged as a strong support level, while $1.015 has held its ground as the five-month low value, indicating the current value to be positive on a larger time frame. The recent high of $3 is not quite out of reach from the currently traded value of $2.236.
RSI on daily charts has held its breath in neutral waters, while MACD is hesitant in providing a clear crossover. The decreasing buying sentiment from these levels highlights the possibility of a prolonged consolidation.
Moreover, if ETH launches some new features, ADA will have to suffer as it has gained a lot of value plainly because of its scaling and competitive stance towards ETH cryptocurrency. One important thing to notice is the decreasing trading volume, which might indicate lesser buyer participation.
ADA has been in a clear downtrend for the last month, precisely September 01, 2021. The price action of hitting a fresh low with each swing has resulted in building up of excessive selling pressure on Cardano, pushing the value even lower to the September 07 low. But, Cardano having strong support at $1.905 has helped it to tackle the selling pressure. After testing the level twice, we can now expect ADA to breach the upper limit of $2.25 and progress towards $2.50 and $3.00 in the next few months.
The selling pressure on broader cryptocurrencies has already waded off, and hence we can expect the price to restart moving any time upwards as per our ADA coin price prediction. Therefore, it would be wiser to continue holding your current Cardano portfolio but avoid adding more without a clear breakout which would be a closing level of above $2.50.