ADA bulls show strength, 15% advance likely

  • Cardano price broke out of a consolidation phase as it sliced through a key resistance level at $1.4 on July 4.
  • If the bid orders continue to pile up, ADA might rally 15% to tag $1.61.
  • On the other hand, a breakdown of $1..287 support will invalidate the bullish temporarily.

Cardano price breached through a pivotal barrier on July 4, indicating a resurgence of buyers. Although the upswing seems likely, a pullback might lead to a breakdown of the immediate support level will not invalidate the bullishness.

Cardano price vies higher high

Cardano price set up three higher highs since June 22 but formed an equal high on July 2. Since this point, ADA rallied 12% to where it currently trades, $1.434.

There is a chance that the bulls might continue to push Cardano price higher to subsequent resistance barriers at $1.484 and $1.61. However, investors should not neglect the possibility of a downswing that shatters the immediate foothold at $1.40.

Such a move will lead to a further downswing that pushes ADA down to $1.357. In a highly bearish circumstance, Cardano price might dip into the demand zone, ranging from $1.287 to $1.318.

ADA/USDT 4-hour chart

While the breakdown of the support level might push Cardano price to $1.251, it would not invalidate the bullish thesis yet.

If this were to happen, ADA might slide toward the June 23 swing low, where the next demand zone, stretching from $1.156 to $1.20, lies.

Such a move would only delay the impulse wave. 

Although BTC has rallied over the weekend, altcoins, including ADA, will promptly follow if it crashes going into Monday. Therefore, investors need to cautious.