- Cardano saw its price gaining 16% on 4 May, suggesting buyers’ resurgence.
- Meanwhile, Bitcoin’s latest crash saw Cardano undoing all the gains, going back to square one, targeting the $1 mark.
- A 24hr candle closing beneath $0.677 will cancel the bullish narrative.
Cardano’s price saw a massive buyers’ comeback, triggering explosive upswings. Nevertheless, the altcoin met a crucial resistance around a vital barrier, catalyzing a complete 180. For now, market players should be patient and observe the token’s reaction around its current foothold before revealing directional intentions.
ADA On Roller Coaster Movements
Cardano formed a range between $0.776 and $1.240, following a 60% rally from 7 March to 29 March. Remember, range-bound actions as easy to trade and spot. Sweeping one limit often sees a move in the opposite direction, sweeping the other boundary.
Though Cardano gained around 16% on 4 May to establish an optimistic precedent, it erased the bullish pattern as BTC price plummeted towards the $36,000 area. The downward action left Cardano without all surges recorded on 4 May. Since ADA swept the range’s low, the next leg has a higher probability of triggering upswings to overcome the $1.24 high.
Nevertheless, ADA has to overcome a few obstacles. The first resistance zone stood at $0.90 and contributed to the latest crash. Overcoming this hurdle will clear the road for a $0.96 retest, the area roughly matching the 50% retracement zone at $1.01.
This area will likely cap BTC’s uptrends, but massive bullishness could see the run-up extending towards the $1.24 range high, translating to a 60% surge.
Though sweeping the $0.776 range low has its benefits, failure to trigger quick recovery beyond the level will reflect buyers’ weakness. That would attract a daily candlestick closing beneath $0.677, creating a lower low. That would mean forgetting the bullish thesis for Cardano.
Moreover, Bitcoin will react according to the broad market price movements. Some analysts believe Bitcoin will crash further towards the $30,000 mark. Such developments will trigger bearish dominance in the crypto space, welcoming new lows. That would see ADA pausing the potential upside as it resorts to declines.
Stay tuned for the upcoming developments in the crypto world.