Cardano’s price is finding support from a rising trendline. A fall would allow buyers who have been sidelined to consolidate, while a breakout above a significant obstacle might send ADA higher.
Cardano’s price is at a turning point
The cardano price formed a local top at $0.647 and then fell into consolidation. After that, ADA made an attempt to resume its upward trajectory by establishing a higher high at $0.680, but the bullish momentum was insufficient to sustain this advance. Consequently, ADA has created a sideways trend and is now trading at $0.608.
Still, ADA has generated a series of higher lows, suggesting that buyers are steadfast in purchasing the dips.
The price of Cardano may short-term break the upward trend line that joins the higher lows made since December 8. This move may attempt a sweep of the equal lows at $0.541, as well as momentarily breach the weekly support level around $0.567.
For those who have been overlooked to acquire ADA at a reduced price, this 11% price correction in Cardano is crucial. This action would also force the short sellers to liquidate their holdings. These two occurrences cause a sharp increase in purchasing pressure, which sets off a rebound rally and results in the retake of the $0.622-level 12-hour support.
In a very bullish scenario, the cardano price may continue rising and try to replicate the 55% rise that was seen between December 7 and December 13 if it can get past the $0.600 to $0.650 supply zone. Consequently, ADA may balloon from the weekly assistance level of $0.567 by 35% in order to reach the $0.800 and $0.823 barriers.
However, it could indicate weakness if the price of Cardano moves from the $0.567 support level to a resistance barrier on a weekly basis. This rise would also lead to a lower low and refute the bullish premise.
The price of Cardano can drop 25% in such a scenario and reach the $0.400 support level.