The bulls flipped the $1.94 level to support on Aug. 17 and 18. This attracted further buying and the bulls pushed Cardano (ADA) above the all-time high at $2.47 today.
The ADA/USDT pair could now rally to $2.73 where it is again likely to face stiff resistance from the bears. If bulls bulldoze their way through this resistance, the pair could reach the psychological barrier at $3.
Although the trend favors the bulls, the RSI near 80 shows the rally is overextended in the short term. If the price slips and sustains below $2.47, the bears will try to pull the pair down to $2.20. A break below this level will suggest that the momentum has weakened in the short term. The pair could then drop to the 20-day EMA ($1.87).