The post Cardano Trying to Rise Above Bearish Captivity: ADA Price May Secure $0.5 if This Trade Plays Out Well appeared first on Coinpedia Fintech News
The crypto markets are turning hopeful as the prices of the various tokens have been gaining acute strength. Since the Bitcoin price reclaimed the monthly highs above $63,300, the altcoins have become extremely bullish. Moreover, tokens like Cardano, which has been maintaining an extended bearish trend, will demonstrate a huge price action in the next few days.
The ADA price had demonstrated a monstrous run during the 2021 bull run and marked a new ATH above $3. The price has entered an extended consolidation since then, as the bounce that occurred in the first quarter of the year also failed to reclaim the levels above $1. Currently, the ADA price has been stuck below $0.5 for over a couple of months and hence the extreme price compression is expected to mark its end very soon.
To rise above bearish captivity, the ADA price is required for 3 major levels, which may certify the beginning of a fresh bullish spell.
The above chart displays the ADA price being stuck within a falling wedge after the rejection of yearly highs. The token has reached the end of the consolidation as the price is testing the upper resistance of the wedge at around $0.415. The price has already risen above $0.405, which is the first level of resistance and a day’s close above the next one, which is the upper resistance of the wedge at $0.414, may validate a rise above the bearish claws.
On the other hand, the Bollinger bands have begun to contract, which indicates a huge price movement could be on the horizon. As the volume is in favour of the bulls, a bullish breakout may be imminent, which may secure the levels above $0.45 initially. However, a sustained weekly close above these levels may help the price reach $0.5 in the coming week. The token has failed to secure these levels since the start of the year, which suggests a bearish presence at these levels.
If the bulls manage to hold these levels and rise above $0.55, then the Cardano (ADA) price may validate a rise above the bearish influence and begin to reclaim the lost levels, starting at $0.6.