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

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.

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