• 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.

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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