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Cardano price fractal strikes again per our prediction, here’s what’s next for ADA

  • Cardano price seems to be repeating a forecasting pattern – a liquidity sweep fractal – for the fourth time in two months.
  • This development suggests that ADA could be ready for a quick run-up to $0.550.
  • A daily candlestick close below $0.435  will invalidate the bullish thesis.

Cardano price is ready to rally after triggering the same pattern for the fourth time in the last two months. This development could provide buyers and traders with a quick and easy setup to capitalize on.

Cardano price seems ready to take off

Cardano price first produced the pattern when it set a swing low at $0.435 on June 13 which was swept as ADA produced a lower low at $0.419 on June 19. This liquidity sweep was followed by a 25% run-up to $0.550 in the next week. 

A similar setup was triggered on July 13 as the June 30 swing low at $0.435 was swept again. However, this time, ADA rallied 36% to $0.550 in the next six days.

The fractal repeated for the third time as the July 18 swing low at $0.467 was swept by producing a lower low on July 26. This development was followed by another Cardano price rally that pushed it up 20%.

As of this writing, Cardano price has swept the $0.488 swing low formed on July 28, hinting at a quick rally. So far, ADA has moved up 4% and could ride another 8% before exhausting its bullish momentum.

ADA/USDT 4-hour chart

ADA/USDT 4-hour chart

However, if Cardano price fails to move higher but instead succumbs to the bearish pressure, things could get ugly. Notwithstanding, buyers have another chance at recreating this fractal by sweeping the $0.450 support level. 

A failure to do so, however, coupled with a daily candlestick close below $0.435 will invalidate the bullish thesis for ADA. In such a case, Cardano price could revisit the $0.380 support level.

Author

Akash Girimath

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.

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