Cardano ADA price has retested a critical level indicating the presence of bulls and hinting at the start of a new price uptrend. Interestingly, the said barrier coincides with the demand zone, adding a tailwind to the ADA upswing that originates here.
Cardano's price was slashed in half after multiple market sell-offs, starting from May 19. Now, ADA price needs to rally 15% to reach the pre-crash levels at $2.037.
The reason for this bullishness is the recent climb above the 50% Fibonacci retracement at $1.637. Moreover, the bullish order block, ranging from a price of $1.525 to $1.624, that facilitated this run-up has propelled ADA price by roughly 10% after a retest. This move implies a resurgence of buyers.
Going forward, investors can expect the so-called “Ethereum-killer” to slice through the immediate resistance at a price of $1.833. This barrier has prevented two upswings from coming to fruition over the past two weeks. If ADAprice shatters this level, market participants can expect a swift 11% rally to the pre-crash level at a price of $2.037.
While things seem to be going up for Cardano ADA price, investors should be wary of a potential sell-off that cuts through the demand zone, stretching from $1.525 to $1.624. A 4-hour candlestick chart close below $1.525 would signal increased sellers.
However, a breakdown of the support level at a price of $1.451 will invalidate the bullish thesis and trigger a 9% downswing to the range low at a price of $1.322.
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