• Cardano price is likely to sweep the range low at $0.487 before triggering a run-up.
  • Investors can expect a 40% gain that propels ADA to $0.677.
  • A four-hour candlestick close below $0.471 will invalidate the bullish thesis.

Cardano price is in a spot favorable for the bulls and short-term traders as a rally might be in the works. A minor retracement will allow interested buyers an opportunity to accumulate ADA at a discount before catalyzing an explosive uptrend.

Cardano price ready for more gains

Cardano price set a range between $0.487 and $0.614 as it rallied 25% between May 14 and 16. Since then, ADA has not moved to sweep either of the ranges.

As explained in previous articles, a rangebound movement is not only easy to identify but trade. A sweep of the range low is likely to be followed by a quick run-up to the range high. If the momentum continues to build up in favor of the bulls, the rally will extend. The opposite will occur if the range high is swept first.

For Cardano price, investors can expect a sweep of the $0.487 level, which will be the first sign of accumulation. The confirmation will arrive after a recovery above this level, which is where interested traders can enter a long position.

This recovery will be followed by an explosive move to $0.614, where a local top can form. However, if buyers continue to accumulate ADA, there is a chance Cardano price will extend to the next hurdle at $0.677. 

In total, this move would constitute a 39% gain and is likely where the upswing is capped for the so called “Ethereum-killer.”

ADA/USDT 4-hour chart

ADA/USDT 4-hour chart

While the technicals make a logical sense, the game plan requires Bitcoin’s vote of approval. In case the big crypto continues to fall, then Cardano price will follow suit. In this situation, if ADA produces a four-hour candlestick close below $0.471, it will create a lower low and invalidate the bullish thesis.

This bearish development could further trigger a 15% crash in Cardano price to $0.397.

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Crypto winter to resume in Q3

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Crypto winter to resume in Q3

Bitcoin price, Ethereum and other cryptocurrencies are on the backfoot yet again – their moves accelerated after a panel discussion that was held at Siyntra for the ECB yearly economic forum.

More Bitcoin News

Coinbase’s new SOL staking program won’t save Solana price from this brutal outlook

Coinbase’s new SOL staking program won’t save Solana price from this brutal outlook

Solana price is lacking bullish momentum, which has led to a huge correction. This pullback comes after an impressive recovery rally seen across the entire crypto space. 

More Solana News

Why TRON's TRX price can flash crash

Why TRON's TRX price can flash crash

A brief technical and on-chain analysis on TRON price. Here, FXStreet's analysts evaluate where TRX could be heading next.

More Tron News

With Grayscale suing the SEC, how will Dogecoin price and crypto markets react?

With Grayscale suing the SEC, how will Dogecoin price and crypto markets react?

Dogecoin price witnessed a massive bounce last week but recently pulled back due to the market condition. Since then, DOGE is trying to find a stable footing for the next leg-up. 

More Dogecoin News

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin price has gone through turbulent times over the last few months. From reaching a new all-time high to hitting yearly lows and revisiting levels since 2020, the crypto markets have been extremely volatile.

Read full analysis

BTC

ETH

XRP