Cardano Price Prediction: ADA looks to retrace 13% as consolidation ensues
- Cardano price has been in a consolidation phase, forming a rising wedge pattern.
- A breakout from the lower trend line will likely result in a 13% pullback to $2.47.
- If ADA climbs higher, producing a higher high above $3.11, it will end the bearish thesis.
Cardano price has been coiling up since August 23 swing high and shows signs of an incoming drop. ADA needs to break through the all-time high to invalidate the bearish thesis.
Cardano price decides on a directional bias
Cardano price set up three higher highs and four higher lows since August 21. Connecting these swing points using trend lines reveals the formation of a rising wedge. This technical pattern leans bearish, and a breach of the lower trend line forecasts an 18% downswing to $2.29, determined by measuring the distance between the first swing high and low and adding to the breakout point.
However, this crash will not be a swift move lower due to the presence of multiple support levels. The dropping prices will encounter the $2.47 demand barrier, breaching which will push Cardano price down to $2.38. While the selling pressure is likely to exhaust here, investors should expect a retest of the $2.29.
ADA/USDT 4-hour chart
As long as ADA stays above the lower trend line of the rising wedge, the bulls have nothing to fear. If the upper limit of the technical pattern is breached, it will indicate a resurgence of buyers. However, the bearish thesis will face invalidation only after ADA sets up a new all-time high above $3.11.
In such a case, Cardano price might head to $3.37, coinciding with the 161.8% Fibonacci extension level.
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.
