- Cardano price hovers around $0.443 after falling to sustain above the $0.448 support level.
- ADA is at an inflection point, which could result in a 13% drop to $0.380 or a 13% rally to $0.505.
- Investors must pay close attention to the equal lows at $0.425 to determine which way ADA will head next.
Cardano price shows a consolidation below a stable support level and has yet to reveal a directional bias. The ongoing range tightening will likely resolve as the US markets head to a fresh start this week.
Cardano price awaits directional bias
Cardano price has been easy to trade by observing the liquidity fractal. This setup contains ADA sweeping the swing lows and recovering above the said level to kick-start a new run-up. So far, there have been seven liquidity runs, with the eighth on September 21.
The latest move knocked Cardano price below all of the swing lows after August 30 and formed equal lows at $0.425. Although initially, ADA moved above the $0.448 support level, it failed to sustain there and has resulted in a slow decline combined with a consolidation.
Going forward, investors can expect a sweep below the $0.425 level, followed by a quick recovery above this level. This development will represent the ninth liquidity run. Therefore, investors should look for a recovery above $0.425 after the sweep to identify the next move in Cardano price.
If successful, this development will trigger a run-up to $0.505, which would constitute a 17% ascent. However, if ADA kick-starts its run-up from the current position, it would represent a 13% move to $0.505.
ADA/USDT 12-hour chart
While things are looking up for Cardano price, a breakdown of the equal lows at $0.425 without recovery will indicate that the sellers are in control. In such a case, ADA could slide lower and retest the range low at $0.384, which roughly coincides with the weekly support level at $0.380.
This downswing would constitute a 13% drop from the current position and is likely where the downside is capped for Cardano price.
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.