Cardano price to enter buy zone before surging to $1.30

Cardano price is taking a breather by retracing to the immediate support levels at $1.03 and $0.97.
This pullback will allow sidelined buyers to kick-start a 25% upswing to a yearly open at $1.31.
A daily candlestick close below $0.971 will invalidate the bullish thesis for ADA.

Cardano price is experiencing a sudden surge in buying pressure due to the mini-crash observed in Bitcoin. Regardless of the correlation between ADA and BTC, the so-called “Ethereum-killer” was due for a quick retracement anyway due to its exponential rally.

Cardano price needs replenishments

Cardano price rallied 51% between March 18 and 28, setting up a swing high at $1.24. It is likely bulls faced exhaustion after this impressive run-up, and, as a result, AD dropped 10% to trade at $1.12.

While a recovery is likely, there is a chance for ADA to drop lower and retest the immediate support level at $1.03. Doing so will allow Cardano price to set a base before launching higher. As for the upside objective, the bulls are likely to target the yearly open at $1.31.

From $1.03, the move would constitute a 25% ascent and is likely where the upside is capped for ADA. However, if Cardano price decides to revisit the $0.971 support floor, the rally would constitute a 35% ascent.

ADA/USDT 4-hour chart

Additionally, the bullish thesis for Cardano price is completely dependent on Bitcoin’s directional bias. A surge in sell orders that triggers a flash crash for the big crypto will easily cross-contaminate Cardano and other altcoins.

So, a daily candlestick close below $0.971 will invalidate the bullish thesis for Cardano price, by undoing the 51% gains. This move would further sow seeds of doubt and trigger a potential crash to $0.86.

Share: Cryptos feed

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.

Join Telegram