- ADA price plummeted beneath the support floor of $1.01, gathering liquidly and indicating a potential price reversal.
- The resulting upside targets higher highs towards the weekly resistance zone around the $1.20 area, confirming a 20% upswing.
- Violating the 24 January swing low of $0.951 will cancel ADA’s bullish thesis.
Cardano (ADA) has experienced steady downward movements since 18 January on a near-term outlook. The latest actions saw the alt slipping beneath a reliable support level to gather liquidity. With that, market participants may expect Cardano to record reversals within the upcoming week.
Cardano Price Targets Recovery
ADA price formed a near-term local high around $1.26 on 8 February. That came after the token surged 25% in about a week. However, the leg-up was exhausted, translating to sharp retracement towards $1.01 and below. Nevertheless, the move to gather liquidity shows ADA ready for price reversals.
That way, enthusiasts may expect ADA price to experience buyers’ resurgence in the upcoming days. Though the barrier at $1.10 might prevent this surge, it isn’t significant, resulting in a further climb by ADA.
The value level at $1.20 remained critical in printing the January higher high. Moreover, this zone represents a weekly resistance zone. Therefore, Cardano might retest this area and create a local high here. Such actions will reveal a 20% climb.
While everything might appear up for ADA price, broad market sentiment remain crucial in the alt’s price movements. A Bitcoin-persuaded sudden fall that pushes Cardano to form a 4hr candle close beneath the 24 January swing low of $0.951 will print a lower low.
Such actions will likely show bears favoritism, canceling the highlighted bullish case and catalyzing a possible downward move for ADA.
Cardano’s negative outlook aligns with the overall market conditions. While publishing this article, the global cryptocurrency market cap stood at $1.77, representing a 3% decrease since the previous day. Also, Bitcoin dropped more than 2%, extending its downswings to $39,173.97 at this publication.
However, pundits remain optimistic about the crypto market, predicting reversals within the coming week. Improved market sentiment will back ADA’s upside journey.
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