This resistance blocks ADA’s path to $2

The price of Cardano has been following Bitcoin for the past few weeks, but has yet to create a new record high.

However, he could do so soon if he is able to clear this major hurdle.

By Edris Derakhshi (TradingRage)

The USDT wall chart

On the ADA/USDT chart, the asset has risen almost vertically, breaking several resistance levels, including the 200-day moving average, which is a key trend indicator. However, the $1.2 resistance level has been preventing the market from going higher and the price is consolidating below this moment.

While it appears to be creating a head and shoulders pattern, as long as the $0.75 support zone holds, the market structure will remain bullish and a new record high will be within reach.

The BTC paired chart

The chart paired with Bitcoin shows an almost similar picture to that of ADA/USDT, with one key difference. The ADA/BTC chart creates the head and shoulders pattern above a significant level, which is the 1000 SAT area. If the pattern’s neckline, which coincides with the 1000 SAT support level, is broken, a drop towards the 200-day moving average, located around the 700 SAT mark, is likely.

On the other hand, if the 1000 SAT area holds, a further rally towards the 1500 SAT resistance zone would be very likely in the coming weeks.

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