Cardano Price Prediction: ADA bleeds 12% but shows signs of recovery
- 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
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.
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.
