The previous day’s close had pulled the Cardano price below the 200-day MA, support levels. However, the price is currently fighting to get back above these levels in order to keep the uptrend intact. With a successful breakout, the ADA price could eventually be programmed to hit $3 within a small time frame.
The asset was an inch close to hit the milestone at $3 when the bears started to extract their profits. And as an outcome, the price was slashed from $2.9 to as low as $2.47. The price, however, bounced through the decisive phase where-in a plunge could have landed close to $2.2 area. However, the asset which is trending within the descending parallel channel could eventually undergo a substantial breakout.
The asset could range high in order to smash the upper levels of the channel and proceed towards the target at $3. No doubt slight pullbacks could appears on the way, yet the 200-day MA support area is enough strong to hold the price. And hence the asset could eventually gain another 10% to 14% to smash the immediate highs at $2.8.
Collectively, Cardano price appears to undergo a prominent recovery and achieve the target set at $3. And hence, the asset successfully reclaimed its position above the 200-day MA to mark the resumption of the uptrend. In case the ADA price fails to break the channel, yet the MA could provide strong support to sustain. Therefore clear multiple barriers towards the target of $5 in a coming couple of months.