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Cardano Price Prediction: ADA gives 45% bull rally another try

  • Cardano price shows a pullback toward the lower trend line of an ascending triangle setup.
  • The MRI’s State Trend Resistance at $1.35 is likely to be tested on its way down.
  • A bounce from $1.35 or the upper boundary of the demand zone at $1.26 seems plausible.

Cardano price is headed south to produce another higher low before breaking out of a bullish pattern.

Cardano price takes another jab

Cardano price set up its all-time high at $1.48 on February 27 and has formed multiple higher lows and a series of highs since then. An ascending triangle is created when these swing points are connected using trend lines.

This setup forecasts a 45% upswing, determined by adding the distance between the pivot high and low to the breakout point at $1.48.

This move places ADA at $2.16.

The recent attempt by Cardano bulls to breach this trend line was not successful as short-term sellers overwhelmed the buyers leading to a close below the crucial resistance at $1.48. This rejection caused ADA to kickstart a retracement that could bounce from the MRI’s State Trend Resistance at $1.35 or the triangle’s hypotenuse at $1.26. Interestingly, this level coincides with the demand zone that ranges from $1.17 to $1.26.

Cardano price latest breakout attempt has set up a supply zone around the triangle’s baseline that extends from $1.45 to $1.52. Hence, clearing this area will show bulls’ conviction to surge to new highs.

In case of a successful swing high above $1.52, investors can expect ADA to rally toward a new all-time high at $2.16 with a pitstop at $1.81.

ADA/USDT 12-hour chart

ADA/USDT 12-hour chart

This bullish outlook will flip upside down if the buyers fail to dampen or overwhelm the selling pressure. Therefore, a breakdown of the triangle’s hypotenuse that results in a decisive close below $1.17 will create a lower low, signaling the start of a new downward trend.

In such a case, 11% pullback to $1.03 seems logical.

Author

Akash Girimath

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.

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