What is Cardano (ADA) Doing?
Despite a bearish month in the crypto space, ADA has been holding its position quite well and doing much better than most of its competitors. The last few days have been quite good for Cardano (ADA) as it spiked from $1.2 to $1.4 and is aiming for the $1.7-$1.8 levels
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Cardano (ADA) Bullish Scenario
Cardano ADA had a major correction in the month of June and is now looking to move towards the upside. The level ADA bulls are currently aiming at is $1.7, but it is not going to be an easy ride. There is major resistance at the $1.48 mark and minor resistance at $1.40.
The ideal move for ADA would be to break the minor resistance at $1.40 and touch the $1.48 mark before retesting $1.40. This would put it in a great position to rally for the $1.7 price target.
From another perspective, ADA’s price is also being squeezed on the 4HR and daily time frames and could go either way. The candlestick structure is forming a symmetrical triangle, and the price will move out of it eventually.
The bullish scenario for this structure is quite similar to the above analysis. The price will break out of the triangle around $1.40 and move towards $1.7 after retesting the resistance at $1.48.
Cardano (ADA) Bearish Scenario
Even though ADA is looking good to make a nice move towards the upside, it won’t be able to achieve it if BTC does not push through to the $42K region.
The bearish scenario for ADA is that it will get rejected from the minor resistance at the $1.40 level and plunge all the way down to $1.09 following BTC’s bearish trend.
Similarly, the symmetrical triangle can also be seen as a rising wedge (slightly pointed towards upside), and that could also be a bearish sign for ADA. If the price falls below the triangle, it will plunge to $1.20 in no time and will retest the price to go even lower to the $1.09 region
Conclusion: Is Cardano ADA Bullish or Bearish?
At the moment, Cardano ADA is in the indecisive territory and can go either way. The ideal thing to do is to wait for the symmetrical triangle to play out and see which direction the price breaks. If the price breaks above, we can go long on ADA, and if it falls out of the triangle, ADA will be bearish for the coming days or even a week.