Cardano encountered significant selling pressure following a notable rejection at the $1.3 resistance region, leading to a sharp decline.
However, the price has now reached a critical support level, suggesting the potential for a bullish consolidation phase in the medium term.
Technical analysis
By Shayan
The daily chart
Cardano recently failed to break through the substantial $1.3 resistance zone due to increased selling pressure, mainly from participants taking advantage of the distribution phase and opening short positions.
This rejection resulted in a decline, with the price finding support at the crucial $0.8 level, where a bullish rebound has already occurred.
The price range between $0.8 and $1.3 represents a critical consolidation zone, with buyers likely defending the $0.8 threshold.
A bullish retracement phase towards the $1.3 mark is expected in the medium term.
The 4-hour chart
The rejection at $1.3 is reflected on the 4-hour chart, where significant selling activity has pushed the price lower.
This correction aligns with the typical behavior of a healthy uptrend, allowing for profit-taking and market stabilization. Cardano price has landed within a robust support region, defined by the Fibonacci levels of 0.5 ($0.8) to 0.618 ($0.7).
This area should provide a strong defense, preventing further declines. A bullish rebound and a consolidation phase towards the $1.3 mark seem likely in the medium term. With substantial support, Cardano could soon resume its upward trajectory, reinforcing the bullish sentiment.
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