Cardano price sets sight on $1.20 while ADA looks for a launchpad
- Cardano price rally faced rejection at the $1 psychological level, leading to a retracemet.
- ADA is likely to bounce off the $0.842 to $0.916 demand zone, triggering a 31% ascent to $1.20.
- A breakdown of the $0.803 support level will invalidate the bullish thesis.
Cardano price is struggling to move beyond a crucial support level even as Bitcoin consolidates. The recent uptrend faced rejection and is currently heading lower to look for a stable support level and trigger a new rally.
Cardano price to take another jab
Cardano price rallied 22% from February 28 in an attempt to move past the $1 psychological level. However, the bullish momentum was not enough, leading to a retracement. The pullback will continue until ADA finds a stable support level.
Fortunately, the four-hour demand zone, extending $0.842 to $0.916 is in the vicinity and Cardano price is likely to find support here. A bounce off this area will be key in triggering a move past $1 but also in retesting the $1.20 resistance barrier.
In total, this uptrend would constitute a 30% ascent and is likely where ADA will set a local top. A move beyond this level would require a massive surge in buying pressure or a retracement that allows bulls to recuperate their momentum.
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ADA/USDT 4-hour chart
On the other hand, if Cardano price fails to bounce off the $0.842 to $0.916 demand zone, it will indicate a weakness among buyers. A breakdown of this barrier will reveal that the sellers are in control.
However, if ADA produces a four-hour candlestick close below $0.803, it will invalidate the bullish thesis and hand over the reigns to bears. Such a development will open the path for a further move south.
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.
