Cardano bulls aim for $3.16 but ADA remains stuck in tight range
|- Cardano price action is in the middle of the monthly price range.
- Further price action is in favor of ADA bulls that have a few technical signals on their side.
- By the end of September, ADA price action can be back at $3.
Cardano (ADA) is on a weekly bounce off the $1.90 level and hitting $3.16 as the high for this year. The weekly price action is right in the middle of this range, but bulls have a few elements in their corner as an incentive to stay in their positions and run prices up back towards $3.16.
Cardano has cooled off and looks ready for the next leg higher
Cardano buyers were very patient last week until the opportunity occurred to build a long position in ADA. Sellers ran prices down towards $1.89, a level that has proven its importance on past occasions. It acted as the launching point on August 16 for the rally that lasted for two whole weeks. After sellers were able to run prices down, it did the rally some good as price action was getting overheated and indicators started to flash warning signs on being overbought.
With the bounce off that $1.89 level, the rally since July got a green ascending trend line formed and is acting as a reference point now for both buyers and sellers. A retest of that trend line might still be in the cards, but it will most likely attract more buyers as a means of entry for those who missed the entry last week at $1.89.
ADA/USD weekly chart
The bull rally is still intact as long as this weekly candle can close above the green ascending trend line. Expect not many countermoves from sellers as there is no real solid entry point for them for the moment. Once price action should ramp up to $2.74, that might hold some resistance but be very short-lived. Once there, bulls will charge in full size for the push towards $3 and $3.16 with the retest of the high for this year.
If market sentiment would turn in ADA, sellers would gain control if the green ascending trend line would break. For there, sellers will try to push price-action back down towards $1.89 for a third test.
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.