- Cardano price is undergoing a bullish retracement after the recent 55% upswing.
- A bounce off the $0.516 support floor is likely to trigger another attempt to retest and overcome the $0.677 hurdle.
- A four-hour candlestick close below $0.471 will create a lower low and invalidate the bullish thesis for ADA.
Cardano price witnessed impressive returns last week as the altcoin underwent an explosive upswing. ADA was among other altcoins like WAVES, KAVA and more that rallied the previous week and are now undergoing a retracement in preparation for the next leg-up.
ADA price thinks two steps ahead
Cardano price deviated below the range, extending from $0.487 to $0.614 on May 26, which was a bullish signal. As this development was followed by an explosive, up-only move that propelled ADA by 55%.
The run-up broke through the range high at $0.614 and attempted to flip the $0.677 hurdle. While exhaustion and profit-taking went hand in hand, ADA kick-started its retracement. In search of stable levels, Cardano price has tagged the midpoint of the aforementioned range at $0.551.
Investors can expect ADA to breach the $0.541 barrier that it is currently grappling with and dive deep to retest the subsequent support level at $0.516. A bounce off this barrier will put ADA in a deep discount mode relative to the midpoint and is likely going to attract sidelined buyers.
A resurgence in buying pressure, as a result, could trigger another leg-up that lifts Cardano price by 52% to tag the lower limit of the $0.785 to $0.900 hurdle.
ADA/USDT 1-day chart
Regardless of the bullish outlook, if sellers continue to dump the tokens, a breakdown of the $0.516 support floor seems plausible. Under these conditions, if Cardano price produces a four-hour candlestick close below $0.47, the bullish thesis will face invalidation by producing a lower low. Such a development could see ADA could crash to the $0.397 foothold.
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
Shiba Inu eyes positive returns in April as SHIB price inches towards $0.000015
Shiba Inu's on-chain metrics reveal robust adoption, as addresses with balances surge to 1.4 million. Shiba Inu's returns stand at a solid 14.4% so far in April, poised to snap a three-month bearish trend from earlier this year.
AI tokens TAO, FET, AI16Z surge despite NVIDIA excluding crypto-related projects from its Inception program
AI tokens, including Bittensor and Artificial Superintelligence Alliance, climbed this week, with ai16z still extending gains at the time of writing on Friday. The uptick in prices of AI tokens reflects a broader bullish sentiment across the cryptocurrency market.
Bitcoin Weekly Forecast: BTC consolidates after posting over 10% weekly surge
Bitcoin price is consolidating around $94,000 at the time of writing on Friday, holding onto the recent 10% increase seen earlier this week. This week’s rally was supported by strong institutional demand, as US spot ETFs recorded a total inflow of $2.68 billion until Thursday.
XRP price could renew 25% breakout bid on surging institutional and retail adoption
Ripple price consolidates, trading at $2.18 at the time of writing on Friday, following mid-week gains to $2.30. The rejection from this weekly high led to the price of XRP dropping to the previous day’s low at $2.11, followed by a minor reversal.
Bitcoin Weekly Forecast: BTC consolidates after posting over 10% weekly surge
Bitcoin (BTC) price is consolidating around $94,000 at the time of writing on Friday, holding onto the recent 10% increase seen earlier this week.
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.