Cardano’s Price Falls After Bouncing From 6-Week Range Low
The leading cryptocurrency by market cap, Bitcoin (BTC), saw a huge bounce over the last 24 hours as it dropped to as low as $19.2k before the time of writing. Following this dip, its price then rebounded into a 10% upward move to briefly trade at $20.8k. However, the rebound was short-lived as sellers were quick to capitalize.
Consequently, another crypto that saw a bounce in this period is Cardano (ADA), which bounced from its 6-week range lows to $0.44. As the weekend kicked off, it seemed as if a downward move was imminent for the altcoin.
The aforementioned ADA range had its low at $0.44 and a high at $0.64, and a mid-range value at around $0.54. The $0.42-$0.44 region has been a strong demand zone in the past month.
Looking at the daily chart of ADA/USDT, the price of ADA is now in the demand region, as its price is around $0.4448 at the time of writing. Bulls may step in to capitalize at this level if history repeats itself.
On the other hand, a bearish descending triangle has formed on the daily chart and ADA’s price is at a decisive point as it’s at the apex of the chart pattern. If ADA’s price is unable to close above the upper bound of the chart pattern, then ADA’s price may continue to fall. However, if it can close above this level then the bearish thesis will be invalidated.