• Cardano price consolidates between two converging trend lines, hinting at a volatile move soon.
  • A decisive 4-hour candlestick close above $1.40 confirms an uptrend, but a breakdown of $1.20 indicates a new downtrend.
  • ADA is likely to head lower, sweep the swing lows at $1.20 and then proceed higher.

Cardano price has been on a downtrend since June 3 without any substantial higher highs, suggesting that the bears are plaguing the markets. As ADA trades inside a tight range, it consolidates between two converging trend lines and anticipates a massive breakout.

Cardano price prepares fakeout

Cardano price was trading above the 50% Fibonacci retracement level at $1.47 until mid-June. However, this changed as ADA slid below it on June 18. Since then, the Cardano price action has been in the form of lower highs and higher lows, indicating a tightening of the range.

Typically, developments like these result in massive moves.

While the traditional breakout looks for the altcoin to slice through the inclined/declined trend lines, investors should pay close attention to the immediate swing points, which will help discern where ADA might be heading.

Assuming Cardano price breaks lower, it will tag the support level at $1.24. If the selling pressure continues to build up, ADA might sweep the lows at $1.20. This downswing collects liquidity, which is a telltale sign for the start of an upswing

Therefore, investors can expect a 10% correction and a sweep of $1.20, followed by a 16% uptrend that retests the resistance level at $1.40. Breaching this level opens the possibility of retesting the 50% Fibonacci retracement level at $1.47.

ADA/USDT 4-hour chart

ADA/USDT 4-hour chart

The bullish thesis explained above will be in jeopardy if Cardano price fails to climb above $1.20. Such a move will reveal that the sellers are dominant and are absorbing the buying pressure.

In such a case, ADA will likely revisit the subsequent swing low at $1.11 from June 23. A breakdown of this barrier will invalidate the optimistic narrative and kick-start a downtrend that could push Cardano price to the range low at $1.


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

Bitcoin eases ahead of key Federal Reserve decision on interest rates

Bitcoin eases ahead of key Federal Reserve decision on interest rates

Bitcoin retraces slightly, trading above $59,000 on Wednesday, as crypto markets brace for the upcoming interest-rate decision by the US Federal Reserve (Fed), which is expected to lower interest rates for the first time in more than four years.

More Bitcoin News
Why US citizens can’t participate in airdrops: Top house republicans ask SEC Chair Gary Gensler

Why US citizens can’t participate in airdrops: Top house republicans ask SEC Chair Gary Gensler

Crypto market participants in the United States are excluded from airdrops for legal reasons. Airdrops occur when crypto projects distribute their tokens to holders in a free or discounted manner, sending them directly to their wallet address or inviting eligible users to claim these crypto assets. 

More Cryptocurrencies News
DUSK price set for a rally after finding support around key level

DUSK price set for a rally after finding support around key level

Dusk (DUSK), a Layer 1 blockchain protocol that brings classic finance and real-world assets (RWA) on-chain, recovers initial weekly losses and recaptures the $0.210 level, up 5% in the day on Wednesday. 

More Cryptocurrencies News
Binance addresses WazirX and Zettai accusations on the July hack

Binance addresses WazirX and Zettai accusations on the July hack

The WazirX team and Nischal Shetty continue to mislead customers about a $230 million hack in July, according to Binance. On Tuesday, crypto exchange Binance addressed “inaccurate and misleading statements” from Zettai and WazirX regarding Binance.

More Binance News
Bitcoin: On the road to $60,000

Bitcoin: On the road to $60,000

Bitcoin price retested and bounced off from the daily support level of $56,000 this week. US spot Bitcoin ETFs posted $140.7 million in inflows until Thursday and on-chain data supports a bullish outlook.

Read full analysis
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

BTC

ETH

XRP