Can Cardano Price Hit $3.11 Before 2024 Ends Amid Its Bullish Rally?

Cardano (ADA) price has soared beyond the $1 mark after increasing its value by almost 200% in the last month. This is an outstanding rebound for the altcoin, which traded for $0.20 earlier this year.

This rally can be viewed as a signal of a possible reversal from a long downward trend that ADA had been in since its ATH in 2021. Investors are now asking if Cardano can keep up the pace and hit new heights before the year 2024.

Some analysts predict Cardano could eventually retest its all-time high of $3.11.

Regulatory Relief Sparks Cardano’s Momentum

The increasing and improving activities in the regulatory aspect have been key to the Cardano price rise. The crypto market received some regulatory relief because Gary Gensler resigned as SEC chair.

Earlier this year, the SEC had classified ADA as a security, which caused an uproar and led to a decline in its prices. Nevertheless, the current departure from Gensler has changed the market sentiment in a positive way, bringing back confidence among investors.

IOG, Cardano’s development company, has been dismissing SEC’s claims, labeling them as factually incorrect and noting that these accusations could not interrupt the blockchain’s functions.

IOG has also had issues with enforcement-based regulatory actions, arguing that they lack the guidance required for blockchain development. These assurances have further helped boost optimism and helped ADA to move back to the position of one of the best-performing altcoins in the past couple of weeks.

Cardano (ADA) Price Analysis: Key Levels to Watch

Cardano is currently at $1.0518, slightly down 1.31% for the day as the market seems to be consolidating after a long bull run. It has gone up from $0.20 to slightly above $1 in a few weeks, this points towards the prevalent bullish signals.

Nevertheless, the Relative Strength Index (RSI) is now at 87.35, which means that ADA is now in the overbought zone. This is positive but also points to the potential for a short-term pullback or consolidation.

To continue with the bullish run to the levels above, ADA needs to break through its resistance levels of $1.10 and $1.20. A close above such levels could propel ADA to attempt to test a more significant resistance level such as $1.50, a major psychological and technical level.

On the downside, the support zones at $0.85 and $0.60 will be decisive for ADA’s bullish outlook in case of a reversal.

The parabolic nature of ADA’s recent rally aligns with broader market trends, as profits from Bitcoin’s surge are being reinvested into altcoins like Cardano. Analysts believe that as long as Bitcoin maintains its bullish momentum, ADA could continue benefiting from altcoin market inflows.

Bitcoin’s Influence on Cardano’s Trajectory

The Bitcoin price surge has helped in the recent Cardano price uptrend. As of now, BTC is at $97,918.60, slightly below the $100,000 psychological level.

Bitcoin’s ability to sustain its bullish momentum has created a favorable environment for altcoins as investors diversify their holdings and reinvest profits into smaller-cap assets like ADA.

Nevertheless, Bitcoin is currently trapped at $98,000-$100,000, and how it will perform in this range will define the rest of the crypto market.

A decisive breakout above $100,000 could spark a new wave of inflows into altcoins, potentially pushing Cardano to test $1.50 or higher. On the other hand, if Bitcoin retraces to key support levels at $90,000 or $85,000, it could temporarily halt ADA’s upward momentum.

Bitcoin’s performance near $100,000 will not only influence ADA’s price action but will also dictate the overall sentiment in the cryptocurrency market. Investors are closely watching BTC’s consolidation pattern, as it holds the key to sustaining the altcoin rally.

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