Cardano Price Prediction: ADA resets before the next leg up to new all-time highs
|- Cardano price faced exhaustion of bid orders as it hit the base of an ascending triangle at $1.48.
- A minor retracement to the immediate demand barrier at $1.34 seems likely.
- Shattering the resistance level at $1.48 forecasts a new all-time high for ADA.
Cardano price awaits an expansion as buyers re-enter an accumulation phase before breaching a crucial overhead barrier.
Cardano price to pullback before catapulting higher
Cardano price is traversing an ascending triangle pattern formed when multiple higher lows and a series of highs are connected using trend lines.
In this setup, buyers aggressively bid up the ADA price, creating higher lows, while a cluster of sellers at $1.48 absorb this momentum, which produces swing highs.
A bullish breakout will occur when the sellers lose steam resulting in a surge higher. In Cardano's case, the 48% upswing is determined by measuring the distance between the first swing high and low and adding it to the breakout point at $1.48.
This move places the ADA target at $2.16.
At the time of writing, the so-called "Ethereum killer" created another swing high as it failed to breach the triangle's base. Interestingly, the Momentum Reversal Indicator (MRI) flashed a cycle top signal in the form of a red 'one' candlestick on the 12-hour chart.
This technical formation projects a one-to-four candlestick correction. The retracement will likely end around the MRI's State Trend Support at $1.34, coinciding with the short-length, 25 Simple Moving Average (SMA).
A breakdown of this would not necessarily affect the upswing and would find stable ground for a reversal around the triangle's hypotenuse at $1.26, which coincides with the long-length 50 SMA.
Therefore, investors can expect an upswing to emerge at $1.34 or $1.26.
ADA/USDT 12-hour chart
On the flip side, if the sellers' ask orders dominate, the trend line connecting the swing lows could be breached. In such a scenario, market participants should expect a swift correction to $1.20.
If Cardano price breaches $1.15 and continues to descend, the bullish thesis will face invalidation and result in an 11% correction to $1.03.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.