• Cardano price slid nearly 8% as the crypto market collectively witnessed a minor market crash.
  • The recent sell-off has allowed ADA to tap a confluence of support around $1.26, increasing its upswing probabilities.
  • A 20% run-up to $1.54 seems likely if sidelined investors begin to pour in.

Cardano price has been on a steady upswing over the past week but faces a tiny retracement today. A bounce from the immediate support barrier seems likely.

Cardano price aims to come back stronger

On the 4-hour chart, Cardano price has sliced through the 50 four-hour Simple Moving Average (SMA) at $1.31 and tested the confluence of 100 and 200 SMAs at roughly $1.26. Interestingly, this point is just above a crucial demand zone that stretches from $1.19 to $1.25.

This crash has restarted the Momentum Reversal indicator (MRI) count and prevented the formation of a cycle top. Additionally, the quick bounce shows that buyers are ready to purchase ADA at a discount.

Therefore, investors can expect a quick 15% upswing in Cardano price toward $1.44, coinciding with the 162% Fibonacci extension level or a 20% run-up to $1.52.

Beyond $1.52, if the bullish momentum persists, market participants can expect a retest of the all-time high at $1.55 and a leg up to new record levels.

ADA/USDT 4-hour chart

ADA/USDT 4-hour chart

On the flip side, if the sell-off continues, Cardano price could most likely enter the aforementioned demand zone. A breakdown of the range low at $1.13 and extended trading below this level will most likely invalidate the bullish thesis.

However, as long as ADA stays inside the next area of support ranging from $1.14 to $1.01, it still has a chance at recovery, no matter how slim.

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.

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