• Cardano price hovers inside a range, extending from $0.433 to $0.521. 
  • A sweep of the range low seems likely before ADA starts a recovery rally to $0.521.
  • A decisive flip of the $0.433 support floor into a resistance level will invalidate the bullish thesis. 

Cardano (ADA) price has been in a consolidative phase for nearly a month. This sideways movement comes after a near 40% crash in early April. Going forward, a bounce in Bitcoin could see altcoins, including ADA, trigger a recovery rally.

Also read: Cardano on-chain indicators flash buy signals

Cardano price ready to move higher

Cardano price crashed 37% between April 9 and 13, along with the entire crypto market. After this sudden spike in selling pressure alleviated, ADA slipped into a rangebound movement between $0.433 and $0.521. 

As Cardano price hovers around the range low, investors can expect ADA to sweep the range low at $0.433 to collect the sell side liquidity resting below equal lows. This move might seem bearish at the time, but if it is followed by a quick and decisive recovery above $0.433, it would be a buy signal. 

This range low sweep is a move often employed by market makers or smart money to trap retail investors in the wrong direction. 

Hence, a recovery above $0.433 will likely be followed by an impulsive move that tags the range high at $0.521. This move recovery rally would constitute a 20% gain. However, in a highly bullish case, ADA could attempt a retest of the daily resistance level at $0.576, constituting a 33% gain measure from $0.433. 

ADA/USDT 4-hour chart

ADA/USDT 4-hour chart

If Cardano price slips below $0.433 but fails to recover above it, it would signal a weakness in the market. This move would produce a lower low and a lower high, suggesting a shift in the market structure favoring bears. Hence, the bullish thesis will face invalidation if it loses the $0.433 support floor.

This development is likely to be followed by Cardano price finding support around $0.385 level, which is roughly 10% away from $0.433. 


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.

Recommended content


Recommended Content

Editors’ Picks

This week could be explosive for ETH: Ethereum ETFs to debut in the US on Tuesday

This week could be explosive for ETH: Ethereum ETFs to debut in the US on Tuesday

Ethereum (ETH) is down nearly 1% on Monday as the Securities & Exchange Commission (SEC) confirmed via its website on Tuesday that it has given the final approval for spot ETH ETFs. Considering the ETH ETF launch and the upcoming Bitcoin Conference, this week could prove crucial for Ethereum.

More Ethereum News

SEC gives final approval for Ethereum ETFs to begin trading

SEC gives final approval for Ethereum ETFs to begin trading

The Securities and Exchange Commission (SEC) approved the S-1 registration statements of spot Ethereum ETF issuers on Monday, making it the second digital asset ETF to go live in the US, according to the latest filings on its website. The approval is also visible across the websites of the various asset managers that applied for the product.

More Ethereum News

Could Donald Trump and Elon Musk provide Bitcoin's bullish spark?

Could Donald Trump and Elon Musk provide Bitcoin's bullish spark?

Trump could use Justice Department's 200,000 BTC as headstart for potential Bitcoin reserve, says analyst. Elon Musk hints at potential Bitcoin endorsement after US dollar value destruction post and laser eyes profile picture. The bearish crowd has remained silent since Bitcoin's two-week rebound.

More Bitcoin News

Crypto investment products continue positive run after $1.35 billion net inflows

Crypto investment products continue positive run after $1.35 billion net inflows

CoinShares' weekly report shows that crypto investment products saw a third consecutive week of inflows. Bitcoin saw inflows of $1.27 billion, with short-bitcoin recording more outflows. Ethereum-based products outperformed Solana on year-to-date inflows.

More Cryptocurrencies News

Bitcoin: Will BTC continue its bullish momentum?

Bitcoin: Will BTC continue its bullish momentum?

Bitcoin (BTC) price increased by 5.5% this week until Friday after breaking above a descending trendline. Currently, it is trading slightly higher by 0.23% at $64,166.

Read full analysis

BTC

ETH

XRP