Cardano price set up a swing low on June 22, which was followed by an exponential run-up that led to a steep pullback. Since the retracement, ADA has been on a slow uptrend.
The recent price action reveals consolidation, hinting at a slowdown of the rally. Therefore, investors can expect a minor correction before the momentum restarts.
Cardano price catches its breath
Cardano price is currently setting up the second lower high since July 4. This move indicates that the 16% upswing since July 2 is slowing down. Therefore, investors need to be open to the possibility of a pullback.
The likely targets for this correction are $1.357 and the demand zone ranging from $1.287 to $1.318. ADA needs to slide 7% to tag the support area’s upper trend from its current position at $1.427.
This move will allow buyers to accumulate ADA at a discount, which will build up the steam and fill any unfilled orders from the July 2 upswing.
The resulting buying pressure might propel Cardano price to $1.40; breaching it would push it to $1.486. If the buying pressure continues to sustain or build up here, the rally could extend up to the June 15 swing high at $1.61.
The move from $1.318 to $1.61 would constitute a 22% ascent.
In some cases, ADA might sweep the $1.65 swing high set up on June 10.
Things might turn awry for the so-called “Ethereum killer” if the pullback fails to find support at $1.357 or the demand zone stretching from $1.287 to $1.318.
A potential spike in selling pressure that breaches the said support area will set up a lower low, which puts a dent in the bullish outlook outlined for Cardano price.
However, this optimistic scenario will face invalidation if it produces another swing low at $1.251. Under these circumstances, ADA might slide 5% to tag $1.195.