• Cardano price is likely to sweep the range low at $0.487 before establishing its directional bias.
  • A bounce off the range low could trigger a 40% ascent to $0.677 if ADA bulls can overcome the range’s midpoint at $0.551.
  • A four-hour candlestick close below $0.471 will invalidate the bullish thesis.

Cardano price is showing an interesting set up as it struggles to make a move above a crucial support level. A rejection here could lead to a buying opportunity for patient investors before ADA explodes.

Moreover, the upcoming Vasil hard fork set to debut in June,  is an upgrade which will boost the smart contract capabilities of Cardano and Plutus - a smart contract platform built on ADA.

Cardano price to take a hike

Cardano price is facing immense selling pressure combined with a lack of volatility as it approaches the $0.487 to $0.614 range’s midpoint at $0.551. Rejection at this barrier could lead to a sweep of the range low at $0.487.

Assuming this minor downtrend occurs, it will signal a market manipulation from smart money investors. This move will most likely be followed by a quick reversal toward the range high at $0.614. 

This run-up would amount to 25% gain and is a place where local top could form. However, if buyers continue to chime in, the rally could extend to $0.677, bringing the total gain to 40%.

Considering how Bitcoin price is ready to make a move, Cardano price could benefit if the big crypto favors a bullish directional bias. In such a case, patient and sidelined investors have a good opportunity to accumulate ADA at a discount.

ADA/USDT 4-hour chart

ADA/USDT 4-hour chart

Supporting this bullish case for ADA is the supply distribution, indicated by the accumulation seen by whales holding between 100,000 to 1,000,000 tokens. This category of holders increased their count from 20,562 to 20,637, representing a 0.33% spike. 

This slow inflation of the number of wallets holding ADA represents accumulation of ADA from institutional investors and falls in line with the technical outcome.

ADA supply distribution 

ADA supply distribution 

Regardless of the bullish optimism Cardano price exhibits, if sellers tank Bitcoin in the short-term, there is a good chance ADA will follow. 

In such a case, if Cardano price produces a four-hour candlestick close below $0.471 it will invalidate the bullish thesis by producing a lower low. This move will open the path for sellers to crash ADA by 15% to $0.397.

 

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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

This crypto investment strategy will help you triumph after the bear markets

This crypto investment strategy will help you triumph after the bear markets

A brief technical and on-chain analysis on a few cryptos. Here, FXStreet’s analysts evaluate where some of the hottest cryptos on the market could go next.

More Cryptocurrencies News

New sources affirm USDD is on a path to collapse like Terra’s UST

New sources affirm USDD is on a path to collapse like Terra’s UST

Tron launched its stablecoin USDD in May, at the same time as Terra’s sister tokens LUNC (formerly LUNA) and UST were imploding. The stablecoin recently detached from its $1 peg, sparking fears of a crash. 

More Tron News

Why Dogecoin, Shiba Inu, and LUNA 2.0 should be on your watchlist

Why Dogecoin, Shiba Inu, and LUNA 2.0 should be on your watchlist

A brief technical and on-chain analysis on a few cryptos. Here, FXStreet’s analysts evaluate where some of the hottest cryptos on the market could go next. 

More Dogecoin News

How trade SafeMoon price for a quick profit?

How trade SafeMoon price for a quick profit?

SafeMoon price gets ready for a quick run-up amid a bearish challenge. As a result, SAFEMOON has been consolidating below a crucial resistance barrier. Investors can expect the altcoin to resume its run-up soon.

More SafeMoon News

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin price has gone through turbulent times over the last few months. From reaching a new all-time high to hitting yearly lows and revisiting levels since 2020, the crypto markets have been extremely volatile.

Read full analysis

BTC

ETH

XRP