Cardano Price Prediction: ADA looks to retrace 11% after massive rally
- Cardano price witnessed a 37% upswing over the past six days.
- This run-up swept the swing high at $1.373, collecting liquidity present above it.
- ADA will likely correct 11% to the $1.195 support level before it embarks on another leg-up.
Cardano price rallied exponentially after coming close to retesting the range low. However, after this intense run-up, ADA investors are likely to book profit, leading to a pullback. Therefore, investors need to be aware of a downswing in the short term.
Cardano price awaits a pullback
Cardano price surged 37% from July 20 to July 26, sweeping above the July 4 swing high at $1.373. This uptick in ADA market value collected the liquidity present here in the form of buy stops.
Such a move is typically followed by a retracement as investors and market makers book profit. Therefore, investors need to keep an eye out for this minor crash.
The support levels at $1.251 and $1.195 are critical and might stop this correction by absorbing the selling pressure.
The July 25 swing high at $1.195 has a higher chance of serving as a foothold due to the retests on June 23 and June 26.
Therefore, market participants can expect an 11% pullback to $1.195 from its current position – $1.351.
ADA/USDT 12-hour chart
While the retracement is likely to lead to a reversal into a new leg-up, investors should be wary of increased selling pressure that slices through $1.195.
If this move were to occur, the resulting bearish momentum might push Cardano price down to the subsequent support level at $1.108.
A breakdown of this barrier will invalidate the bullish thesis and potentially knock ADA down to the range low at $1.
Author
Akash Girimath
FXStreet
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.
