The post Has Cardano Rally Called Off? Will ADA Price Remain Within Consolidated Range? Here’s What You Should Know appeared first on Coinpedia Fintech News
The ADA price is the short timeframe that hints at a probable pullback as the bulls remain passive. Being in the top 10, the token tends to follow the star token, Bitcoin, struggling to rise and sustain above the threshold at $100K. Besides, Ethereum has also plunged below $4000, which is circulating Berish waves across the markets, including the Cardano price rally. The third-generation token reached the levels not tested in the past couple of years and is also expected to breach the upper resistance if held firmly.
The ADA price traded within a massive falling wedge since the rejection from its ATH and after breaking out from the range, the token set off a 125% rise. The current trading pattern suggests the bulls have entered an exhaustion phase after printing massive bullish candles for 5 consecutive weeks. Therefore, the price of Cardano crypto is believed to trade within a range-bound for a few days until the liquidity flows back into the asset.
The weekly chart of the ADA price rally suggests the token remains under bearish influence regardless of the recent rally. Although the price underwent a more than 125% jump, the Gaussian channel remains bearish. This channel indicates the trend pattern of the rally and also suggests the potential trading opportunities. A rise above the upper bands of the channel suggests the token reaching the highest level of volatility, which may open the doors of a trend reversal or correction. As a result, the channel remains bearish and the divergence in RSI substantiates the claim.
Meanwhile, the current pullback can also offer a good entry point at around $0.984 or at $0.748 if the markets are correcting wider. After a rebound, a new ATH could be imminent, as it happened previously before the 2021 bull run. Therefore, the ADA price rally is expected to set off after a brief reversal to the lower targets and any range below $1 can be a good entry point as the price is primed to rise above $5 in the upcoming bullish cycle.