- Cardano price revisits $0.49 under relatively low volume.
- Being an early buyer is unwarranted despite recent increase in buying activity.
- A safe invalidation of the downtrend is a breach above $0.66.
Cardano price could begin heading north towards higher targets; being an early buyer is unwarranted for one reason.
Cardano price needs a safe entry
Cardano price is seeing choppy price action following Wednesday's bullish influx. Wednesday’s FOMC decision to hike interest rates 75 basis points induced a speculative frenzy prompting intraday traders to hold on to their accumulated long positions. The "buy the rumor, sell the news" event triggered a supply vs. demand blitzkrieg, leading to a 21% bull rally into a daily high of $0.53 in just a few short trading hours.
The Cardano price now trades at $0.49 as the bullish hype has simmered. The $0.50 level has been a critical level of interest for traders this month, so the breach of liquidity levels just below does provoke the idea that an uptrend rally will occur for the layer 2 token. Still, traders should approach ADA prices with a more conventional trading plan.
ADA/USDT 1-Day Chart
Cardano price has shown an influx of buyers since the $0.44 lows that occurred Monday, June 13. The bears’ attempts to lower prices comes with a considerable drop in volume, which is likely to confound a countertrend rally in the coming days. However, if the bears retest $0.44 in the short term, a true sell-off could occur at $0.20.
A conventional buying strategy is to allow the Cardano price to move higher before joining. Cardano price needs to breach the previous wave four at $0.66. After this occurs, a rally should ensue, possibly into $0.74 and higher. Next, a three-wave pullback should occur in lower areas of interest. A second breakout after the three-wave pullback will be crucial for investors to consider before buying the ADA price to make long-term gains. If this scenario occurs, the Cardano price would have the power to rally as high as $1.40, resulting in a 190% increase from the current Cardano price.
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.
Recommended Content
Editors’ Picks
Crypto Today: Metaplanet raises $10M to buy BTC, ETH price moves below $1,600 as Tron gains signals panic
The cryptocurrency aggregate market capitalization stabilized around $2.7 trillion on Wednesday, with Bitcoin’s $84,000 support momentarily anchoring the market against external bearish discourses.
Chainlink active addresses drop as whale selling spikes, could LINK crash below $10?
Chainlink active addresses slide dramatically to 3,200 from February’s peak of 9,400. The downtrend in network activity coincides with increasing selling activity among whales with between 10 million and 100 million LINK.
Bitcoin stabilizes around $83,000 as China opens trade talks with President Trump’s administration
Bitcoin is stabilizing around $83,500 at the time of writing on Wednesday after facing multiple rejections around the 200-day EMA at $85,000 since Saturday. A breakout of this strong level would indicate a bullish trend ahead.
Binance Chain completes $914M BNB token burn, hinting at a potential rally
Binance Chain has finalized its programmed 31st quarterly BNB token burn, potentially setting the stage for the world’s fifth-largest cryptocurrency, with a market capitalization of $81.45 billion, to rally in the coming weeks.
Bitcoin Weekly Forecast: Market uncertainty lingers, Trump’s 90-day tariff pause sparks modest recovery
Bitcoin (BTC) price extends recovery to around $82,500 on Friday after dumping to a new year-to-date low of $74,508 to start the week. Market uncertainty remains high, leading to a massive shakeout, with total liquidations hitting $2.18 billion across crypto markets.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.