Cardano price provides a buy signal for a revisit of $0.530
- Cardano price prepares for a 17% ascent after its recent liquidity run on the $0.434 swing lows.
- A resurgence of buying pressure should be enough to breach through the $0.472 and $0.505 hurdles and reach $0.530.
- A daily candlestick close below $0.423 will create a lower low and invalidate the bullish thesis for ADA.
Cardano price shows an affinity to move higher after sweeping the liquidity resting below the previously formed highs. If history is any indication, this is a clear buy signal for ADA investors looking to make a quick buck.
Cardano price ready for more gains
Cardano price has been showing a clear buy signal that comes in the form of liquidity runs of previous swing lows. This move is followed by a quick burst in buying pressure that pushes ADA higher.
Anticipating these swing-low sweeps can help position ourselves better for the next leg. So far, there have been five liquidity runs and the latest one was produced on August 26, with a bullish confirmation produced today.
Since ADA produced a higher high today at $0.455, investors can expect a minor pullback to $0.425 and enter a long position here. The first target for this move would be the $0.460 level, clearing which would open the path for $0.505.
This move would constitute an 11% ascent, but a flip of $0.505 would result in a total gain of 17% after reaching $0.530. This is likely where Cardano price will form a local top before providing the next trade setup.
ADA/USDT 1-day
On the other hand, if Cardano price produces a daily candlestick close below $0.423, it will create a lower low, indicating that the bears are in control.
This development would invalidate the bullish thesis for ADA and potentially trigger a correction to $0.400, where buyers can give the uptrend another go.
Author
Akash Girimath
FXStreet
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.
