Cardano Price Forecast: ADA consolidates before establishing a clear trend
- Cardano price shows the exhaustion of bullish momentum that is resulting in sideways movement.
- As ADA price tries to establish a clear trend, a minor retracement to the immediate demand barrier ranging from $1.19 to $1.25 seems likely.
- A breakdown of $1.19 could see a retest of the subsequent demand zone extending from $1.01 to $1.14.
Cardano price shows an intense buying pressure that has led to it reach a swing high. As bulls take a break, the sellers might trigger a pullback.
Cardano price shows indecisiveness
Cardano price surged nearly 30% over the last week to overthrow the local top at $1.32. This upswing seems to have exhausted buyers, which has resulted in sideways movement above the swing high.
If the bears take control, a pullback might be a logical outcome. The immediate 6-hour demand zone ranging from $1.19 to $1.25 will be able to cushion any short-term selling pressure. Hence, the bulls must come to ADA’s rescue here.
If the buyers succeed in overwhelming the selling pressure, a 15% ascent will allow Cardano price to hit $1.44, coinciding with the 161.8% Fibonacci extension level. A further pile-up of bid orders could even propel the so-called “Ethereum-killer” to the 200% Fibonacci extension level at $1.52.
Hence, defending the immediate area of support will allow Cardano price to come close to retesting its all-time highs at $1.55.
ADA/USDT 6-hour chart
However, if Cardano price slices through $1.19, it will put the optimistic scenario under jeopardy and result in a 4% downtrend to the 12-hour demand zone’s upper trend line at $1.14.
If investors continue to book profit, ADA might be in this area of interest for quite some time before another bull rally begins.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
