- Cardano price is undergoing a bullish retracement after the recent 55% upswing.
- A bounce off the $0.516 support floor is likely to trigger another attempt to retest and overcome the $0.677 hurdle.
- A four-hour candlestick close below $0.471 will create a lower low and invalidate the bullish thesis for ADA.
Cardano price witnessed impressive returns last week as the altcoin underwent an explosive upswing. ADA was among other altcoins like WAVES, KAVA and more that rallied the previous week and are now undergoing a retracement in preparation for the next leg-up.
ADA price thinks two steps ahead
Cardano price deviated below the range, extending from $0.487 to $0.614 on May 26, which was a bullish signal. As this development was followed by an explosive, up-only move that propelled ADA by 55%.
The run-up broke through the range high at $0.614 and attempted to flip the $0.677 hurdle. While exhaustion and profit-taking went hand in hand, ADA kick-started its retracement. In search of stable levels, Cardano price has tagged the midpoint of the aforementioned range at $0.551.
Investors can expect ADA to breach the $0.541 barrier that it is currently grappling with and dive deep to retest the subsequent support level at $0.516. A bounce off this barrier will put ADA in a deep discount mode relative to the midpoint and is likely going to attract sidelined buyers.
A resurgence in buying pressure, as a result, could trigger another leg-up that lifts Cardano price by 52% to tag the lower limit of the $0.785 to $0.900 hurdle.
ADA/USDT 1-day chart
Regardless of the bullish outlook, if sellers continue to dump the tokens, a breakdown of the $0.516 support floor seems plausible. Under these conditions, if Cardano price produces a four-hour candlestick close below $0.47, the bullish thesis will face invalidation by producing a lower low. Such a development could see ADA could crash to the $0.397 foothold.
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.
Recommended Content
Editors’ Picks
Ripple wipes out weekly gains, experts comment on role of Ripple stablecoin
Ripple declined to $0.52 on Thursday, erasing all gains registered earlier this week. Ripple SVP Eric van Miltenburg’s comments on the firm’s stablecoin, and how it is expected to benefit the XRP Ledger and native token XRP have raised concerns among crypto experts.
Hedera HBAR slips nearly 10% after air is cleared on mistaken link with giant BlackRock
HBAR price is down nearly 10% on Thursday, partly erasing gains inspired by the misinterpreted link with BlackRock. Despite the recent correction, Hedera’s price is up 44% in the past seven days.
The reason behind Bonk’s 105% rise and if you should buy now Premium
Bonk price has shot up 105% in the past five weeks. A retracement into $0.0000216 or the $0.0000152 to $0.0000186 imbalance would be a good buying opportunity. Patient investors can expect double-digit gains from BONK that could extend up to 70%.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?