- Analysts say Cardano (ADA) must break the critical $0.88 resistance level to trigger a rally to $1.20
- Founder Charles Hoskinson has declared he wants “Cardano to win,” highlighting the upcoming “Glacier” upgrade
- Despite bullish sentiment, Ethereum’s TVL and market cap still vastly outpace Cardano’s
Cardano (ADA) is showing renewed bullish momentum, gaining more than 3% in the past hour and trading at $0.83 at press time, according to CoinMarketCap data.
The token rebounded from a daily low of $0.7964, with traders eyeing a potential breakout from its consolidation phase.
Can ADA Break the $0.88 Resistance?
Top analyst Ali Martinez highlighted that $0.88 is the key resistance ADA must conquer to validate a rally toward $1.20.
What are the key ADA levels to watch?
Martinez shared a chart analysis, showing Cardano inside an ascending channel since mid-June, with Fibonacci levels providing crucial price ranges.
The immediate resistance lies at $0.8789 (0.786 Fib level). A decisive close above this threshold could pave the way for ADA to test $0.96, followed by $1.05 (1.1019 Fib extension).
Should bullish momentum sustain, Martinez projects a final target of $1.23 (1.272 Fib extension), signaling nearly a 50% upside from current levels.
On the other hand, ADA has support around $0.78 (0.618 Fib), with stronger demand likely at $0.72 and $0.66 if selling pressure rises.
The Fundamental Angle: Hoskinson Wants “Cardano to Win”
In his latest AMA session on Sunday, Cardano founder Charles Hoskinson declared that he wants Cardano to win when asked about competition with Ethereum.
Related: Security Talk Leads to Surprise $100M Cardano DeFi Proposal from Charles Hoskinson
He urged developers to build more on Cardano and highlighted the upcoming Glacier update, which will introduce the Hydra protocol, enhanced smart contracts, and the Midnight token.
What is the reality of the Cardano vs. Ethereum gap?
Despite Hoskinson’s confidence, the gap between Ethereum and Cardano remains substantial. Ethereum currently boasts a $532 billion market cap, dwarfing Cardano’s $28 billion valuation.
Related: Cardano Price Prediction: ADA Struggles Below $0.85 Despite ETF Optimism
In terms of on-chain activity, Ethereum’s $91.64 billion Total Value Locked (TVL) vastly outpaces Cardano’s modest $362 million, as per DefiLlama. Still, the Glacier upgrade could prove pivotal for ADA, potentially narrowing the gap by enhancing scalability and utility within its DeFi sector.
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