This Cardano price setup could yield traders a 15% gain
|- Cardano price has tagged the four-hour demand zone, extending from $0.443 to $0.459.
- Investors can expect ADA to trigger a 15% run-up to $0.550.
- A four-hour candlestick close below $0.435 will invalidate the bullish thesis.
Cardano price is showing signs that it wants to move higher and trigger a quick run-up. This development comes after many days of sideways movement. If successful, investors can realize quick gains, but traders need to be cautious with Bitcoin as it could ruin the setup.
Cardano price remains indecisive
Cardano price is moving higher after forming a triple tap setup, which is a variation of a triple bottom. The technical formation has three distinctive swing lows with the central one deviating below the first and the third swing low. The third swing low is often formed at the same level as the first one.
The rally kick-starts after the last retest of the first swing low.
For Cardano price, the first swing low was formed on June 13 at $0.435 and ADA deviated below it on June 18. Although the final retest was on June 30, the bullish momentum was not enough, which led to consolidation.
However, ADA has formed a four-hour demand zone, extending from $0.443 to $0.459, which has been helpful in triggering the long-overdue run-up.
Going forward, investors can expect Cardano price to rally 15% and retest the $0.550 hurdle and collect the liquidity resting around it. In a highly bullish case, ADA could reach the next level at $0.628.
ADA/USDT 4-hour chart
Regardless of the optimism, a four-hour candlestick close below the $0.435 support level will invalidate the triple tap setup. In such a case, ADA needs to quickly recover above the said level to have any chance at attempting a leg-up.
If the bulls fail to do that, it could result in a 12% drop that retests the subsequent weekly support level at $0.380.
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.