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Cardano Price Prediction: ADA takes second jab at stiff resistance level

  • Cardano price has changed its course of action from bearish to bullish.
  • A bounce from the demand zone, ranging from $1.525 to $1.624, has signaled a shift in trend favoring the bulls.
  • If ADA breaks below $1.451, the bullish thesis will face invalidation.

Cardano price has retested a critical support level indicating the presence of bulls and hinting at the start of a new uptrend. Interestingly, the said barrier coincides with the demand zone, adding a tailwind to the upswing that originates here.

Cardano price eyes a higher high

Cardano price was slashed in half after multiple market sell-offs, starting from May 19. Now, ADA needs to rally 15% to reach the pre-crash levels at $2.037.

The reason for this bullishness is the recent climb above the 50% Fibonacci retracement level at $1.637. Moreover, the bullish order block, ranging from $1.525 to $1.624, that facilitated this run-up has propelled ADA by roughly 10% after a retest. This move implies a resurgence of buyers.

Going forward, investors can expect the so-called “Ethereum-killer” to slice through the immediate resistance level at $1.833. This barrier has prevented two upswings from coming to fruition over the past two weeks. If ADA shatters this level, market participants can expect a swift 11% rally to the pre-crash level at $2.037.

ADA/USDT 4-hour chart

ADA/USDT 4-hour chart

While things seem to be going up for Cardano price, investors should be wary of a potential sell-off that cuts through the demand zone, stretching from $1.525 to $1.624.. A 4-hour candlestick close below $1.525 would signal increased sellers.

However, a breakdown of the support level at $1.451 will invalidate the bullish thesis and trigger a 9% downswing to the range low at $1.322.

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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