- Cardano price shows potential for a 60% run-up to retest the weekly resistance barrier at $0.776.
- The relief rally could stop prematurely if the buyers fail to flip the $0.550 hurdle into a support level.
- A daily candlestick close below the $0.380 support level will invalidate the bullish thesis for ADA.
Cardano price seems to be making quite a comeback after crashing violently over the past few days. This massive downswing is a common theme across all cryptocurrencies as the bear market rages on. However, for ADA, a relief rally seems to be incoming.
Cardano price ready for a quick bounce
Cardano price shows that it produced three daily candlestick closes around the $0.470 level between May 11 and June 14. Although not a textbook representation, this setup looks like a triple bottom, which is a bottom reversal pattern, often formed at the end of downswings.
Additionally, the sellers seem to be taking a break, allowing Bitcoin, Ethereum and other altcoins to bounce and recover a part of the losses. With these two supporting factors, Cardano price seems to be ready for a quick relief rally as well.
The upside objective seems to be roughly 60% away from the current level at $0.486, which is the weekly resistance barrier. However, climb to this barrier is not an easy task; ADA needs to flip the $0.550 hurdle into a support floor, which is a starting step.
Beyond this, Cardano price needs to muster enough bullish momentum to not just produce a higher high above the June 8 swing point at $0.66, but sustain it so ADA can climb up and retest the $0.486 level.
While the 60% returns might seem appealing, the journey to this level is a taxing one. Regardless, investors need to observe ADA closely.
ADA/USDT 1-day chart
On the other hand, if Cardano price produces a daily candlestick close below the weekly support level at $0.380, it will produce a lower low and invalidate the relief rally thesis. In such a case, Cardano price might crash 26% and revisit the $0.278 barrier.
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.