How Cardano price can invoke its last bullish ace
- Cardano price has dropped roughly 29% from its recent swing high at $1.25.
- A bounce off the $0.875 to $0.955 buy zone is likely to trigger a 20% move to $1.09.
- A daily candlestick close below $0.776 will invalidate the bullish thesis for ADA.
Cardano price has been on a downtrend since it created a local top on March 28. Efforts to rally higher failed and ADA is now retracing lower, in search of stable support levels.
Cardano price to give it all
Cardano price has suffered a fatal setback as the entire cryptocurrency market took a hit. ADA has dropped 6% from its peak and is currently trading at $0.914. This bearish outlook comes as the big crypto took a U-turn from $42,800 to $39,700 in a matter of a few hours.
Regardless, Cardano price is hovering inside the $0.875 to $0.955 buy zone, which is likely to trigger a recovery rally. Therefore, investors need to take precautions and keep a close eye on Bitcoin price for any sudden reversals.
A resurgence of buying pressure is likely to propel ADA to retest the first meaningful blockade at $1.01, which is the midpoint of the range that Cardano price is traversing. Overcoming this hurdle will open the path for ADA to reach the $1.09 barrier, which is where the upside is limited.
Any move beyond this barrier is highly unlikely due to the presence of massive resistance barriers.
ADA/USDT 1-day chart
On the other hand, if Cardano price fails to take off from the $0.875 to $0.955 buy zone, there is a good chance it will continue to head lower. If this downswing pushes ADA to the range low at $0.776, things will start getting dicey for the holders.
A daily candlestick close below $0.776 will invalidate the bullish thesis for Cardano price. In such a case, ADA will likely head lower in search of stable support levels.
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.
