Cardano Prepares For 60% Price Move

 | Jul 25, 2021 04:03AM ET

Cardano’s fate could be determined by its ability to break out of the $1.00-$1.30 price range.

h2 Key Takeaways/h2
  • Cardano’s price action is contained within two critical price points that will determine where it moves next.
  • On the upside, slicing through the $1.30 resistance level would be vital for ADA to rise to $2.00.
  • If the $1.00 support fails to hold, investors may need to prepare for a 60% crash.

Cardano remains dormant, but as it edges closer to the apex of a consolidation pattern, the chances for an explosive price move increase.

h2 Cardano Prepares For High Volatility /h2

Most cryptocurrencies are enduring a consolidation period that will likely conclude in a substantial price movement.

For Cardano, the ongoing stagnation phase could lead to a 59.50% breakout in either direction. Such an ambiguous outlook is determined by the formation of a descending triangle on its daily chart.

This technical pattern developed due to the price action that ADA has seen since it reached an all-time high of $2.47 in mid-May. A series of lower highs created the triangle’s hypotenuse while its x-axis formed around $1.00, where most of the swing lows were capped.

Now, Cardano must either slice through the overhead resistance at $1.30, or the underlying support at $1.00 to confirm the direction of its trend. Given the importance of these price points, investors should wait for a decisive candlestick above this area to avoid any potential risks.

Breaking through the supply barrier at $1.30 could see the fourth-largest cryptocurrency by market cap head towards $2.00. But if sell orders pile up, leading to a breach of the $1.00 demand wall, Cardano could resume its downtrend to $0.40.