- Two critical price points will determine Cardano’s price movement.
- To be optimistic, rising above the $1.30 resistance level can take ADA to $2.00.
- However, if the $1.00 support fails, investors may have to prepare for a 60% crash.
In a twisted turn of events, Cardano’s dormant stance could be heavily challenged by it coming closer to the peak of a consolidation pattern. This means that the chances for a groundbreaking price move are high. By this, we just mean that Cardano’s fate, and by extension the fate of its community, depends strongly on its ability to break out of the $1.00-$1.30 price range.
As such, most cryptocurrencies right now are going through a consolidation phase that will likely make or break their price. In any case, a substantial price movement will happen, for better or for worse.
Talking specifically about Cardano, its current stable course could end up in a 59.50% breakout in either direction. Although this information isn’t much help to traders, it’s a likely event marked by a descending triangle on its daily chart.
This pattern formed for ADA since its all-time high of $2.47 in mid-May. Since then, a series of lower highs have created the triangle’s hypotenuse while its x-axis treaded around $1.00. Now, traders’ hopes of sunny days or rainy days depend solely on whether Cardano breaks through the overhead resistance at $1.30 or through its support of $1.00. Traders should take great care before investing at this time.
Further, let’s look at what will happen in each scenario. If ADA manages to break through the supply barrier at $1.30, users can expect to see the fourth largest crypto to make its way to $2.00. However, if the trajectory goes downhill and breaches the $1.00 demand, Cardano may fall all the way to $0.40. This would mark a 60% fall.
For now, there is little to do but wait and watch as the market makes its decision. At the time of writing, Cardano sits at $1.21.