Key points:
- Cardano is trading at the crucial 1.22 resistance level. Will it break it?
- If ADAUSD breaks above 1.22, it will be headed to the 1.40 resistance.
- However, a failure to break above 1.22 would bring the 1.11 level into play.
Cardano is trading at the crucial 1.22 resistance level that has been in place since 8 February 2022, which brings the $1.40 resistance level into play. The move from $1.22 to $1.40 represents a 14.75% gain for investors, which is not bad.
If ADAUSD breaks above the $1.40 resistance, the following critical level is at $1.60, representing a 31% gain from the $1.22 level. You will notice that the gains one can make from holding Cardano are much smaller than those you can gain from holding other cryptos.
Should You Buy Smaller or Bigger Cryptos?
Many crypto investors are looking for massive gains that could reach the 1000% level when they buy low priced cryptos that can rally much higher. Some might even argue that you could get a 15% to 30% rally from a stock, which is quite true.
Therefore, depending on what you are looking for, Cardano might not be for you if you are looking for massive percentage gains instead of backing a solid project with a guaranteed future.
As a project, Cardano was the first project to popularise the proof-of-stake transaction protocol, which uses less energy and is faster than the proof-of-work protocol. As a result, Cardano is a well-known and trusted project compared to some of the newer and cheaper projects popping up daily.
Also read: The Best Crypto Brokers in 2022
Therefore, investors looking to buy Cardano support a project with solid prospects that are likely to keep growing over time. However, since its launch, multiple competitor projects have emerged, with some doing much better than Cardano, which was a pioneer.
What’s Next for Cardano?
If Cardano manages to clear the 1.22 hurdle, it will be headed towards the 1.40 level. However, if the crypto fails to break above 1.22, we could go back to the 1.11 support level. A break below the 1.11 level would lead to the 1.00 support level.
A bullish breakout would require significant buying pressure from investors as the crypto markets rally higher, driven by Bitcoin and Ethereum.
*This is not investment advice. Always do your due diligence before making investment decisions.
The ADAUSD daily price chart.
The ADAUSD daily price chart seems ready to break above the $1.22 resistance level.