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Cardano Price Prediction: ADA might pull back before catapulting to $1.60

  • Cardano price has been on a 43% uptrend since bottoming on June 22.
  • ADA is stuck consolidating as it tries to scale higher, indicating weakness.
  • Investors can expect a 7% retracement before a 22% uptrend to $1.61 kick-starts.

Cardano price set up a swing low on June 22, which was followed by an exponential run-up that led to a steep pullback. Since the retracement, ADA has been on a slow uptrend.

The recent price action reveals consolidation, hinting at a slowdown of the rally. Therefore, investors can expect a minor correction before the momentum restarts.

Cardano price catches its breath

Cardano price is currently setting up the second lower high since July 4. This move indicates that the 16% upswing since July 2 is slowing down. Therefore, investors need to be open to the possibility of a pullback.

The likely targets for this correction are $1.357 and the demand zone ranging from $1.287 to $1.318. ADA needs to slide 7% to tag the support area’s upper trend from its current position at $1.427.

This move will allow buyers to accumulate ADA at a discount, which will build up the steam and fill any unfilled orders from the July 2 upswing.

The resulting buying pressure might propel Cardano price to $1.40; breaching it would push it to $1.486. If the buying pressure continues to sustain or build up here, the rally could extend up to the June 15 swing high at $1.61.

The move from $1.318 to $1.61 would constitute a 22% ascent.

In some cases, ADA might sweep the $1.65 swing high set up on June 10.

ADA/USDT 4-hour chart

ADA/USDT 4-hour chart

Things might turn awry for the so-called “Ethereum killer” if the pullback fails to find support at $1.357 or the demand zone stretching from $1.287 to $1.318.

A potential spike in selling pressure that breaches the said support area will set up a lower low, which puts a dent in the bullish outlook outlined for Cardano price.

However, this optimistic scenario will face invalidation if it produces another swing low at $1.251. Under these circumstances, ADA might slide 5% to tag $1.195.

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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