Over the past month, Cardano’s price has been in a consolidation phase. This stagnation followed a roughly 40% drop at the beginning of April. In the future, a jump in Bitcoin could trigger a recovery rally in altcoins, including ADA coin. Cardano’s price has recently been fluctuating between $0.433 and $0.521. Currently, it seems likely that ADA will continue to trade at lower levels within this range before initiating a recovery rally towards the $0.521 level. However, the transformation of the $0.433 support level into a resistance level could disrupt bullish expectations.
Cardano Price Ready to Rise
Cardano’s price was affected by a 37% drop in the entire crypto market during the April 9-13 period. However, after this sudden drop, selling pressure eased, and ADA began to move within a range between $0.433 and $0.521.
Currently, Cardano’s price is trading at low levels, and investors are expecting a move below this range to collect sell-side liquidity below levels like $0.433. While this may initially appear as a setback, if the price quickly and steadily rises above $0.433, it could be interpreted as a buying signal.
Scanning the low range is often a tactic used by market makers or smart money to mislead retail investors. This strategy aims to reduce buying pressure by pulling the price below a certain low level.
ADA Coin Must Surpass This Level for Recovery
If Cardano’s price recovers above $0.433, it will likely target a rise to $0.521, indicating a recovery rally that could yield a 20% gain. However, if a rise occurs in the higher range, Cardano might try to retest the daily resistance level at $0.576, indicating a potential gain of 33%.
However, if Cardano’s price falls below $0.433 and fails to rise above this level, it could indicate market weakness. In such a scenario, ADA’s bullish theses would become invalid, and Cardano’s price might settle at the support level of $0.385, approximately 10% away.
We mentioned the ADA-BTC relationship in the title. As ADA quickly retreated when Bitcoin fell and recovered when BTC rose, this pattern seems likely to continue for a while.
