Cardano price is in a delicate place after its volatile move over the last 24 hours. Investors need to be cautious of entering the market late and getting trapped. A better plan would be to wait for ADA to pull back to critical levels.
Cardano price rallied 12% on October 26 and shattered through two crucial hurdles – the lower limit of the $0.380 to $0.609 range and the 30-day Exponential Moving Average (EMA) at $0.393. This move indicates the resurgence of bullish momentum and will likely propel ADA higher in the coming days.
While the outlook is bullish, no doubt, market participants need to be patient and wait for a pullback. As ADA trades between the 30-day and 100-day EMAs at $0.393 and $0.413, respectively, investors need to pay close attention to Bitcoin.
A retracement for the big crypto would translate to a breakdown of the $0.393 level for Cardano price and would be followed by a retest of the $0.380 or $0.372 support levels. Accumulating ADA at these levels would provide a better risk-to-reward ratio.
The targets, however, would include $0.434, but a flip of this level would allow Cardano price to surge higher and revisit the 100-day EMA at $0.458 and 50% Fibonacci retracement level at $0.494.
In total, investors could expect a 32% run-up for Cardano price after a retracement to $0.372.
ADAUSDT 1-day chart
While things are looking up for Cardano price, a breakdown of the $0.372 support floor will indicate that the buyers are not committed. Such a development could lead to a daily candlestick close below the $0.348 level, which would create a lower low and invalidate the bullish thesis for the so-called “Ethereum-killer.”
This development could see Cardano price potentially develop a double bottom at October 21 swing low at $0.329 and attempt a recovery rally.
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Cardano price shows a resurgence of bullish sentiment that is attempting to overcome a significant hurdle. If successful, ADA can trigger a massive run-up to the ongoing range’s upper limit.
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