- Cardano price has risen 12% due to the market's reaction to the Fed's interest rate decision.
- ADA price shows uptick in transactions on the Volume Profile Indicator.
- Aa classic rally and retest of the $0.56 zone will invalidate the short-term bearish idea.
Cardano price needs more time to pan out. Jumping in to early could lead to a catastrophic loss.
Cardano price currently trades at $0.49 as the bulls have established a strong bullish engulfing candle on the 4-hour chart. Still, from a technical standpoint, the Cardano price has a few more barriers to hurdle before deeming the smart contract alternative token in a bull market.
Cardano price currently hovers below the 21-day moving average. The volume profile indicator shows a significant increase in volume, which will likely entice scalpers and traders to partake in short-term bullish moves. However, the bulls should be cautious as the Relative Strength index breached the supportive buyer zone on the recent dip to $0.45 on July 26. The 12% rally could be a part of a sharp retracement before the next drop occurs.
A fractal of a previous fakeout has been placed in the chart to identify potential price movement. Cardano price will need to hold support above the $0.56 zone. A breach through the barrier will not be enough to promote a bullish entry.
ADA/USDT 4-Hour Chart
Thus, a classic rally and retest of the $0.56 zone will invalidate the short-term bearish idea. Keep in mind the move could take days to play out. If the bulls can accomplish the invalidation requirements, they may induce a rally towards $0.61, resulting in a 23% increase from the current Cardano price.
A brief technical and on-chain analysis on Cardano price. Here, FXStreet's analysts evaluate where ADA could be heading next. Please, subscribe to our YouTube channel, follow us on Twitter @FXScrypto and join our Telegram channel.
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