- Cardano price is currently hovering above the trading range’s midpoint at $1.304.
- The MRI’s sell signal indicates a minor pullback to $1.251 could be around the corner.
- ADA could invalidate the bullish thesis if it slices through the $1.149 support level.
Cardano price is currently hovering around a crucial support level, but a minor pullback before a new leg up seems likely. Therefore, investors can expect ADA to correct critical demand barriers.
Cardano price looks bullish
Cardano price rallied 37% since July 20, but the last leg up failed to create a higher high. Although this might seem bearish, the lower high could be preparation for the incoming correction after the recent exponential climb.
Moreover, the Momentum Reversal Indicator (MRI) has flashed a sell signal in the form of a red ‘one’ candlestick on the 6-hour chart. This technical formation suggests that a one-to-four candlestick correction may be in the cards.
If the selling pressure increases, leading to a correction, investors might see ADA drop below the 50% Fibonacci retracement level at $1.304. In some cases, the $1.251 support level seems like the likely candidate for a reversal.
A potential spike in buying pressure around this barrier could kick-start a new uptrend that retests the supply zone ranging from $1.44 to $1.50. This move could represent a 20% climb from $1.251.
ADA/USDT 6-hour chart
While things seem calm for ADA and optimistic, they could go awry if the $1.251 support level is breached. This move would indicate a weak buying pressure and open the path to $1.195 and $1.149.
If the bearish momentum slices through the $1.149 demand barrier, it will invalidate the bullish thesis and trigger further downward movement for the so-called “Ethereum killer.”