• Cardano price shows signs of exhaustion on the four-hour time frame, suggesting a potential retracement to $0.269 and $0.279 support levels. 
  • A bounce off these levels could yield a minimum gain of 19.52% as it retests the $0.334 hurdle.
  • A four-hour candlestick close below $0.252 that flips it into a resistance level will invalidate the bullish thesis for ADA.

Cardano price has been on a recovery rally for two weeks, but the bullish momentum and volatility seem to be waning owing to the low volume during the weekend trading sessions. Regardless, from a short-term perspective, a minor retracement could allow ADA bulls to regroup and restart the recovery bounce.

Also read: ADA whale accumulation propels Cardano price closer to $0.3; investors aim far higher 

Cardano price ready to move higher after minor retracement

Cardano price crashed a whopping 44% in early June, going from  $0.381 to $0.220 in just five days. But after a local bottom formation on June 10, ADA has bounced 34%, signaling a strong recovery.

But due to the recent uptrend, bulls seem to be exhausted and are taking a break, which could trigger profit-taking from short-term holders, leading to a retracement. The contenders for supporting this correction include the $0.269 and $0.279 barriers.

A bounce off the $0.279 support floor could be key in extending the ongoing recovery rally. A successful spike in buying pressure over the next week could propel Cardano price by 19.52% to retest the next critical hurdle at $0.334.

In a highly bullish case, ADA could extend higher and tag the $0.347 level or the range high at $0.381. 

ADA/USDT 4-hour charr

ADA/USDT 4-hour charr

Although the bullish outlook for Cardano price makes logical sense, investors need to turn their attention toward the equal lows formed at $0.252. A four-hour candlestick close below the aforementioned level that flips it into a resistance barrier will invalidate the bullish thesis for ADA.

Such a development could see Cardano price correct lower and retest the range low at $0.220.


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