Cardano Price Prediction: ADA risks a 10% correction unless this happens
|- Cardano price is testing a supply zone extending from $0.3998 to $0.4099 as part of a strong recovery rally.
- ADA could drop 10% to $0.3507 due to selling pressure from the aforementioned supply barrier.
- Invalidation of the bearish thesis will occur once the price breaks and close above the mean threshold at $0.4051.
Cardano (ADA) price is bullish, trying to reclaim the April highs around the $0.4500 psychological level. However, for the bulls to stay profitable, the cryptocurrency must overcome a crucial supply barrier.
Also Read: Cardano Price Prediction: $0.40 target still in play for ADA as bullish metrics spur optimism
Cardano price risks 10% pullback
Cardano (ADA) price is up almost 65% since October 18, when the broader market turned bullish. The run has been steadfast for ADA but could have reached its peak as the altcoin tests a crucial supply barrier, stretching from $0.3998 to $0.4099.
The outlook of the Relative Strength Index (RSI) spells goose bumps, tipping south to show momentum is fading. The Awesome Oscillators (AO) histogram bars are also flashing red and edging towards the midline and ultimately the negative territory. This shows the bears are steadily gaining ground.
Increased selling pressure could see Cardano price rejected from the supply barrier, moving south and potentially slipping below the $0.3838 support level. A prolonged downtrend could see the price extend into the supply barrier turned bullish breaker extending from $0.2876 to $0.3576 testing the $0.3507 support level. This would denote a 10% fall below current levels.
In the dire case, Cardano price could confirm the continuation of the downtrend by breaking and closing below the $0.3255 midline.
ADA/USDT 1-day chart
On the flipside, increased buying pressure could see Cardano price foray into the supply zone stretching from $0.3998 to $0.4099. A break and close above its midline at $0.4051 would invalidate the bearish thesis, potentially clearing the path for a continuation of the intermediate trend.
In a highly bullish case, Cardano price could extrapolate the gains to the $0.4500 psychological level, or in highly ambitious cases, extend to the range high at $0.4619. Such a move would constitute a 17% climb above current levels.
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.