Cardano Price Prediction: ADA might be due for 10% correction

Cardano price pierced the supply zone that extends from $1.44 to $1.5 as it rallied 18% in nearly four days.
The MRI flashed a sell signal, indicating that this uptrend is at its end.
A 10% pullback to the trading range’s mid-point at $1.304 will most likely occur.

Cardano price is currently experiencing a tussle between the bulls and bears as it enters a crucial supply zone. Therefore, investors can expect a minor pullback before the bulls make a comeback.

Cardano price at an inflection point

Cardano price rallied roughly 18% from its August 3 swing low at $1.26 to set up a swing high at $1.48. While this uptrend was expected, the Momentum Reversal Indicator (MRI) flashed a sell signal in the form of a red ‘one’ candlestick on the 12-hour chart.

This technical formation forecasts a one-to-four candlestick correction. Therefore, investors can expect ADA to pull back shortly.

The $1.374 support level is the most likely candidate to absorb the selling pressure from the correction, but in some cases, a breach of this level could extend the retracement to $1.304, the trading range’s midpoint.

This move would represent a 10% downswing from the current position, $1.46.

ADA/USDT 12-hour chart

While an upswing might likely originate from $1.304, a failure to do so might turn the situation grim and push Cardano price down to $1.251. This development will favor the bears, but the bearish thesis might face invalidation if the bulls ignore the sell signals and push through $1.5.

A decisive 12-hour candlestick close that flips $1.5 level into a support barrier will invalidate the pullback narrative and restart the uptrend.

In such a case, ADA might rally to the next significant level, $1.61.

Share: Cryptos feed

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram