• Cardano price broke below a rising wedge pattern and crashed 12%.
  • ADA looks at a reversal to the $1.833 supply barrier, but a dip towards $1.488 to $1.566 demand zone is likely. 
  • A breakdown of $1.488 will invalidate the bullish reversal thesis.

Cardano price followed the broader cryptocurrency market as it tumbled after Elon Musk’s tweet on Friday. However, ADA seems to have found a support barrier and shows signs of reversal.

Cardano price at an inflection point

On the 4-hour chart, Cardano price fell below a rising wedge pattern on June 2. Although not eventually, ADA hit the resistance level at $1.833 and then collapsed 12%. The buyers seem to have stepped in around the support barrier at $1.653 and are holding the line.

Cardano price could witness an increase in buying pressure that undoes the recent collapse and tag the $1.833 supply barrier.

However, if the immediate support level at $1.653 breaks down, it is likely ADA will find stable ground at the demand zone, ranging from $1.488 to $1.566.

A bounce from this platform might propel ADA 17% to tag $1.833. If the buying pressure persists beyond this barrier, ADA will likely rise another 11% to test $2.037.

ADA/USDT 4-hour chart

ADA/USDT 4-hour chart

On the flip side, if ADA price fails to hold above $1.488, it will invalidate the bullish reversal thesis explained above. 

Such a move would push Cardano price down to $1.448, which is the intended target as forecasted by the rising wedge pattern. Following this, if the ask orders continue to pile up, ADA could slide 8% to $1.322.

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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Fed’s Powell calls for proper crypto regulations as Bitcoin price shoots beyond $20,000

Fed’s Powell calls for proper crypto regulations as Bitcoin price shoots beyond $20,000

Bitcoin price is exploring highs above $20,000 on Tuesday after holding support at $18,800 for nearly four days. Green sprouts are noticeable across the market, led by Uniswap price’s 16.70% move to $6.60

More Bitcoin News

Ethereum price eyes $1,450 as post-Merge tax problems arise

Ethereum price eyes $1,450 as post-Merge tax problems arise

Ethereum price shows a steady climb over the last twelve hours as a direct consequence of the sudden spike in Bitcoin price, which influences the whole crypto market. 

More Ethereum News

XRP price cools off before preparing for its next 100% rally

XRP price cools off before preparing for its next 100% rally

XRP price shows an interesting development in the lower time frame that hints at a potential retracement. The higher time frame scenario also entertains the possibility of a deeper pullback after its recent explosive move.

More Ripple News

MATIC Price Prediction: These signals are key to catching Polygon’s 20% rally

MATIC Price Prediction: These signals are key to catching Polygon’s 20% rally

MATIC price continues to consolidate around the range low for more than a week and shows no signs of breaking out. Investors should pay close attention and anticipate the bullish resurgence, which could trigger an explosive move.

More Polygon News

Bitcoin makes a bullish comeback amid regulatory tension, but lacks confirmation

Bitcoin makes a bullish comeback amid regulatory tension, but lacks confirmation

Bitcoin price takes the first step to recovery but needs solid confirmation that will arrive after a flip of the $19,539 level into a support floor. After a successful flip, investors could expect a move up to an intermediate hurdle at $20,737.

Read full analysis

BTC

ETH

XRP