- Cardano price shows that its 22% upswing has exhausted the momentum, leading to a correction.
- A bounce from the demand zone extending from $1.488 to $1.566 will most likely trigger a 35% bull rally.
- The bullish narrative will face invalidation if the support barrier at $1.322 is breached.
Cardano price is currently experiencing a minor pullback that could push it down to a critical support area. A resurgence of buyers in this zone will propel ADA to pre-crash levels.
Cardano price eyes a higher high
Cardano price rallied roughly 26% between May 25 and 26, but the momentum that pushed it higher seems to be fading away as it tested a ceiling at $1.833. This barrier has prevented ADA from rallying roughly four times in less than three weeks, starting from May 9.
Investors can expect the bullish momentum to rejuvenate as it dips into this area. A quick bounce from this support zone that breaches $1.833 will allow ADA to climb toward $2.193, the first area of interest.
Here, Cardano price could either consolidate or experience a small retracement.
Following this, if the buying pressure continues to persist, there is a high chance ADA revisits $2.30 or retests its all-time high at $2.47.
ADA/USDT 4-hour chart
Although unlikely, a breakdown of the support area that stretches from $1.488 to $1.566 will put a nail in the bulls’ coffin. If such a scenario were to evolve, Cardano price would likely experience an 11% sell-off to $1.322.