Cardano Price Prediction: ADA might need correction before launching 22% upswing
- Cardano price has sliced through an inclined trend line, suggesting increased selling pressure.
- A pullback to the demand zone, extending from $1.156 to $1.196, seems likely before a new uptrend begins.
- If ADA breaks through the demand zone’s lower boundary at $1.156, it will invalidate the bullish thesis.
Cardano price has been on a consistent uptrend since June 22. However, this uptrend is taking a sudden turn to the downside. This pullback is necessary and might attract interested buyers to scoop up ADA at a discount before the actual rally begins.
Cardano price eyes higher high
Cardano price set up a bottom on June 22 at $1, followed by a set of impulse price swings that set up higher lows on its way up. The uptrend hit a dead end at $1.40 and was tested recently on June 30.
The rejection has led to a 7% downswing to where ADA currently trades, $1.297. In doing so, Cardano price sliced through an inclined upswing that connects the higher lows mentioned earlier.
The retracement is likely to move lower, especially considering the weak structure being displayed by Bitcoin price. Therefore, investors can expect an 8% pullback to $1.195, the upper boundary of a demand zone that ranges down to $1.156.
If the buyers come to the rescue, market participants can expect a bounce from this area to propel ADA by 25% to retest the resistance barrier at $1.486. The persistence of bid orders at this level will likely push the so-called “Ethereum killer” to the next supply ceiling at 1.61.
ADA/UDST 4-hour chart
On the other hand, if Cardano price fails to stay above $1.156, it will indicate weakness among buyers and invalidate the bullish thesis.
In such a case, ADA might drop 14% to tag the June 22 swing 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.
