Cardano is about to undergo a highly volatile phase as investors slowly re-enter the market.
KEY TAKEAWAYS
- Cardano has reached an inflection point as volatility prepares to strike back.
- As long as the $1.10 support holds, the odds remain high for an upswing to nearly $2.00.
- If ADA fails to hold above this price hurdle, then a correction to $0.88 may materialize.
Cardano has endured a five-day stagnation period without providing a clear sign for where its price is heading next. Now that ADA sits at a crucial support level, a spike in demand is all that it needs to march towards new all-time highs.
CARDANO PRIMED FOR HIGHER HIGHS
Cardano’s price action has been contained within an ascending parallel channel over the past month.
Each time ADA has risen to this technical formation’s upper boundary since early February, it gets rejected and retraces to the lower edge. From this point, it tends to rebound, consistent with the characteristics of a channel.
Following the recent retest of the channel’s lower trendline, Cardano may be poised for a bullish impulse towards the middle or upper trendline as it has done in the past few weeks.
These interest areas sit at $1.50 and $1.90, respectively.
ADA/USD Daily Chart