Cardano price awaits 20% breakout as ADA range tightens
Cardano price has been rangebound for roughly a week, hinting at an explosive breakout on the horizon. Investors can expect ADA to sweep the $0.776 equal lows before rallying 20% to $0.950. A four-hour candlestick close below $0.676 will...
- Cardano price has been rangebound for roughly a week, hinting at an explosive breakout on the horizon.
- Investors can expect ADA to sweep the $0.776 equal lows before rallying 20% to $0.950.
- A four-hour candlestick close below $0.676 will invalidate the bullish thesis.
Cardano price has slipped into a sideways movement, evidencing a lack of volatility. This move appears to be a fractal, echoing a similar move last seen in February. That time the resolution of the coiling up was an explosive run-up, so investors can expect a similar outcome to play out this time.
Cardano price plays the patience game
Cardano price set up a swing low at $0.776 on March 8 and has stuck close to this level ever since. The tight consolidation that has unfolded resembles the price action seen in February, indicating it could potentially be a fractal.
Since the sideways movement has seen a considerable reduction in volatility, investors can expect a breakout from this formation to result in an explosive move. Due to the equal lows present at around $0.776, there is a good chance market makers might push ADA to sweep lower to collect liquidity before triggering a move higher.
Interested market participants can enter a long position at $0.776. The upside for Cardano price is limited at the first resistance barrier at $0.950. From the equal lows, this rally would constitute a 22% ascent.
In a highly bullish case, ADA could extend the rally to the $1 psychological barrier, where investors in the trade can also book profits.
ADA/USDT 4-hour chart
While things are looking up for Cardano price, a breakdown of the $0.776 barrier without a quick recovery will reveal a weakness among bulls. If ADA produces a four-hour candlestick close below $0.676, however, it will invalidate the bullish thesis and open Cardano price for further descent.
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