Cardano flipped Binance Coin to become the third largest cryptocurrency by market capitalization and is now aiming for more profits
The cryptocurrency market performed excellently in August. Bitcoin is trading around the $ 50,000 mark after falling below $ 30,000 last month. Ether has also rallied in the past few weeks, recovering from the dip below $ 2,000 and is now near the $ 3,400 mark.
One of the best performers of the past few weeks, however, was Cardano. The cryptocurrency has seen a massive rally in which it toppled Binance Coin (BNB) to become the third largest crypto by market cap.
Cardano could widen the gap between him and BNB if the current rally continues. Analysts are bullish on ADA’s near-term performance, with some expecting it to trade around the $ 3.50 region in the hours or days ahead.
ADA price outlook
The ADA / USD 4-hour chart is one of the most bullish of the leading cryptocurrencies. ADA is up 2.5% in the past 24 hours and is only surpassed by Solana among the top 10 cryptocurrencies.
At the time of writing, ADA is trading in the $ 2.90 region and could see further gains in the coming hours. If current momentum is maintained, ADA could beat first major resistance at around $ 3.10 in the next few hours.
At the moment, Cardano’s technical indicators are very bullish. The RSI at 59.36 indicates an overbought situation while the MACD line is clearly in the bullish territory. The indicators point to a possible further growth of the market.
ADA / USD 4 hour chart. Source: TradingView
However, to ensure that the second major resistance is hit around the $ 3.50 mark, Cardano would need the support of the broader cryptocurrency market. The market is slowly pulling back after having rallied for most of the past week.
If ADA fails to break the $ 3.10 mark, it could pull back towards the first major support level around $ 2.58. Unless there is an extensive market sell-off, Cardano should comfortably stay away from its 100 simple moving average (SMA) around the $ 2.35 region.