Cardano price range tightens, ADA reveals plan to revisit $1
|- Cardano price has been consolidating for roughly two weeks, hinting at an explosive breakout.
- The bullish RSI divergence with ADA supports a 20% rally to $1.
- A daily candlestick close below the equal lows at $0.776 will create a lower low and invalidate the bullish thesis.
Cardano price has been stuck trading in a tight range for roughly two weeks with minor daily returns. This sideways movement is reminiscent of the one that occurred in late January and indicates that a bullish breakout seems likely.
Cardano price awaits a volatility blast
Cardano price showed a lack of volatility as it traded sideways from January 22 to February 3. This consolidation resulted in a bullish breakout that allowed ADA to rally 24% and set a swing high at $1.26.
However, the momentum was not enough and led to a retracement to lower areas. As Cardano price range tightens again, the sideways movement now is reminiscent of the earlier one. Interestingly, the Relative Strength Index (RSI) has set up higher lows since February 21 while ADA has set up lower lows, indicating the formation of a bullish divergence.
This technical formation forecasts a bullish move for the so-called “Ethereum killer,” adding credence to the bullish thesis. In the case of a breakout, investors can expect Cardano price to rally 20% and tag the $1 psychological level.
ADA/USDT 1-day chart
On the other hand, if bulls fail to muster up the strength to move higher, Cardano price is likely going to slide lower and collect the liquidity resting below equal lows at $0.776. This liquidity run is another chance for buyers to make a comeback.
However, a daily candlestick close below the equal lows at $0.776 will create a lower low and invalidate the bullish thesis for Cardano price. Such a move will open the path for ADA to explore the $0.676 support level after a 13% crash.
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