As the cryptocurrency market plunged, Cardano’s price broke the $1.24 support threshold. ADA price will likely fall into the demand zone between $1.15 and $1.19 before a trend reversal. The bullish thesis will be invalidated if buyers fail to hold $1.15 as support.
Cardano price has been in a downward trend since July 5, and this sell-off might be ending. A rebound from the critical demand zone will trigger a new uptrend.
Cardano’s price has fallen by 21% since July 5, after reaching $1.49. ADA is trading at $1.21, and Cardano price could reverse its current position to head higher or plunge into a support area ranging from $1.15 up to $1.19. The market structure of Bitcoin makes it likely that there will be an uptrend, no matter when it begins.
Therefore, investors can expect buyers to grab ADA and break the immediate resistance barrier at $1.25 to enter the next demand zone that extends from $1.28 to $1.31.
Read: Cardano Founder Update On Alonzo
A shift in momentum favoring the bulls will be confirmed by a decisive 4-hour candle closing above $1.30; this could extend the ADA uptrend towards the resistance at $1.37 and $1.45 in bullish cases. The ADA could cross $1.50 if buying pressure persists after overcoming $1.45, acting as a strong resistance.
Although the bullish scenario appears logical, a spike in selling pressure can break the demand zone of $1.15 and $1.19, which would indicate buying weakness. A decisive 4-hour candle closing below $1.15 would eliminate the bullish thesis and confirm the downtrend, potentially extending the downfall to $1, which is physiological support.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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