- Massive buying momentum over the past 72hours saw ADA price hitting $1.20.
- Cardano might encounter retracements toward $1 before catalyzing a 55% surge to $1.55.
- However, a 24hr candlestick close beneath $0.857 will cancel ADA’s bullish narrative.
Cardano saw its price exploding after consolidation for a couple of days during March’s 2nd week. The run-up had the alternative coin overcoming multiple obstacles. Meanwhile, Cardano seems prepared for a downside move before triggering further upside.
ADA Price on the Move
Cardano price registered sideways actions between 7 March and 18 March before kick-starting a 50% ascent that pushed the alt beyond the 50-day SMA and 100-day Simple Moving Average near $0.954 and $1.10, respectively.
Though this upsurge seems lucrative, it forced the Momentum Reversal Indicator to display a red sell sign. The technical setup predicts a 1 to 4 red candle drop. That way, sidelined investors might prepare to accumulate Cardano tokens at discounted prices.
The resulting downswing might violate the 100-day Simple Moving Average and push ADA price towards the psychological zone at $1. Here, investors can execute long positions, presuming ADA will reverse and trigger upswings again.
The rally from this region will likely slice past the yearly open near $1.31 before tagging the weekly resistance zone at $1.45. Buyers might meet brief issues here. However, overcoming the challenge might propel Cardano towards the 24hr supply territory stretching between $1.55 and $1.76. Surprisingly, the 200-day Simple Moving Average corresponds with the mentioned demand area’s lower limit, and ADA price will likely print a local high at the level.
Though Cardano displays a bullish outlook, a slight drop appears possible. Nevertheless, massive selling pressure will mean declines. That can see the alt breaching the barrier at $1, signaling weakness by ADA buyers.
A 24hr candlestick close beneath $0.857 will annul Cardano’s bullish theory. Such a development would trigger more drops, clearing the road for a 0.776 support revisit. However, buyers can regroup at this foothold to attempt another upsurge.
Cardano shows weakness following massive surges. ADA changed hands around $1.13 at this writing, losing 1.11% over the past 24hrs. Meanwhile, the alt stayed 36.41% up on the week.