Assessing the possibility of a 40% upswing for Cardano
|- Cardano price is likely to sweep the range low at $0.487 before triggering a run-up.
- Investors can expect a 40% gain that propels ADA to $0.677.
- A four-hour candlestick close below $0.471 will invalidate the bullish thesis.
Cardano price is in a spot favorable for the bulls and short-term traders as a rally might be in the works. A minor retracement will allow interested buyers an opportunity to accumulate ADA at a discount before catalyzing an explosive uptrend.
Cardano price ready for more gains
Cardano price set a range between $0.487 and $0.614 as it rallied 25% between May 14 and 16. Since then, ADA has not moved to sweep either of the ranges.
As explained in previous articles, a rangebound movement is not only easy to identify but trade. A sweep of the range low is likely to be followed by a quick run-up to the range high. If the momentum continues to build up in favor of the bulls, the rally will extend. The opposite will occur if the range high is swept first.
For Cardano price, investors can expect a sweep of the $0.487 level, which will be the first sign of accumulation. The confirmation will arrive after a recovery above this level, which is where interested traders can enter a long position.
This recovery will be followed by an explosive move to $0.614, where a local top can form. However, if buyers continue to accumulate ADA, there is a chance Cardano price will extend to the next hurdle at $0.677.
In total, this move would constitute a 39% gain and is likely where the upswing is capped for the so called “Ethereum-killer.”
ADA/USDT 4-hour chart
While the technicals make a logical sense, the game plan requires Bitcoin’s vote of approval. In case the big crypto continues to fall, then Cardano price will follow suit. In this situation, if ADA produces a four-hour candlestick close below $0.471, it will create a lower low and invalidate the bullish thesis.
This bearish development could further trigger a 15% crash in Cardano price to $0.397.
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.