- Cardano price has deviated below the range low, suggesting a momentary increase in selling pressure.
- A retest of the 6-hour demand zone is likely to propel ADA back to retest the $2.18 resistance barrier.
- A daily close below $1.68 will invalidate the bullish thesis and knock the altcoin down to $1.46.
Cardano price has seen a massive downswing over the week, causing it to slide below crucial barriers. Fortunately, this correction is above a significant demand zone that will likely trigger a buying spree, pushing ADA higher.
Cardano price at wit’s end
Cardano price has nearly halved in value since its all-time high at $3.11 on September 2. ADA is currently trading at $1.85 and is fast approaching the 6-hour demand zone, ranging from $1.68 to $1.79.
This support area is significant in deciding the directional bias for the so-called “Ethereum-killer.” Since Cardano price has sliced through the range low at $1.91, it is in the deep discount area, and which means bears could potentially be taking a break.
A successful bounce off the demand zone mentioned above will likely propel ADA back above the range low. Beyond this, Cardano price could retest the $2 psychological level, indicating a 10% upswing from $1.79.
In some cases, ADA might revisit the $2.08 ceiling and collect the ‘buy stop’ liquidity resting above it. This move would represent a 15% ascent.
ADA/USDT 6-hour chart
The upswing narrative detailed above for Cardano price is contingent that the downswing recedes as it bounces off the $1.68 to $1.79 demand zone. However, if ADA produces a lower low below $1.68, it will invalidate the bullish thesis.
This development could trigger a 12% crash to the immediate support level at $1.46.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.