- Cardano price swept equal lows at $0.425 and is ready to trigger a reversal.
- Investors can expect ADA to break out of its consolidation and kick-start a 25% rally to $0.530.
- A daily candlestick close below the October 2 swing low at $0.415 will invalidate the bullish thesis.
Cardano price has weathered the recent market slump and held its own. In addition to its ongoing consolidation, ADA has swept below a crucial level to collect liquidity, which could kick-start a reversal soon.
Cardano price ready to make its move
Cardano price has been producing liquidity fractals since mid-June, which is essentially a sweep of the previously formed low followed by a quick run-up. So far, there have been eight liquidity runs, with the most recent one taking place on October 2. Equal lows formed at $0.425 were swept, collecting the sell-stop liquidity and punishing early bulls.
Interestingly, Cardano price has also recovered above the $0.425 level, indicating that the buyers are back. Going forward, investors need to wait for ADA to recover above the $0.435 hurdle, which will open the path to start a bull rally.
This development could see Cardano price retest the $0.472 resistance barrier first, clearing which will propel it to another significant blockade at $0.505. The goal of this run-up would be to rebalance ADA at $0.530.
ADA/USDT 1-day chart
On the other hand, if Cardano price fails to stay above $0.425, it will denote weakness. A daily candlestick close below the October 7 swing low at $0.415 will invalidate the bullish thesis for Cardano price by producing a lower low.
This development could see ADA crash 8% to revisit the weekly support level at $0.380.
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.
Recommended Content
Editors’ Picks
Crypto traders brace for short-term volatility with $2.4 billion options expiry on Friday
Bitcoin and Ethereum options market looks bullish on Friday, according to data from intelligence tracker Greeks.live. The firm said it has identified two Bitcoin calls that show an underlying bullish sentiment among market participants.
XRP recovers from week-long decline following Ripple’s response to SEC motion
Ripple filed a letter to the court to support its April 22 motion to strike new expert materials. The legal clash concerns whether SEC accountant Andrea Fox's testimony should be treated as a summary or expert witness.
Lido adds 4% gains as protocol rolls out first step towards decentralization
Lido takes the first batch of simple DVT validators to live, a step taken to decentralize the protocol. Lido leveraged technology to expand the protocol to multiple node operators, inviting both solo and community stakers.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Bitcoin: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.