- Cardano price revisits $0.49 under relatively low volume.
- Being an early buyer is unwarranted despite recent increase in buying activity.
- A safe invalidation of the downtrend is a breach above $0.66.
Cardano price could begin heading north towards higher targets; being an early buyer is unwarranted for one reason.
Cardano price needs a safe entry
Cardano price is seeing choppy price action following Wednesday’s bullish influx. Wednesday’s FOMC decision to hike interest rates 75 basis points induced a speculative frenzy prompting intraday traders to hold on to their accumulated long positions. The “buy the rumor, sell the news” event triggered a supply vs. demand blitzkrieg, leading to a 21% bull rally into a daily high of $0.53 in just a few short trading hours.
The Cardano price now trades at $0.49 as the bullish hype has simmered. The $0.50 level has been a critical level of interest for traders this month, so the breach of liquidity levels just below does provoke the idea that an uptrend rally will occur for the layer 2 token. Still, traders should approach ADA prices with a more conventional trading plan.
ADA/USDT 1-Day Chart
Cardano price has shown an influx of buyers since the $0.44 lows that occurred Monday, June 13. The bears’ attempts to lower prices comes with a considerable drop in volume, which is likely to confound a countertrend rally in the coming days. However, if the bears retest $0.44 in the short term, a true sell-off could occur at $0.20.
A conventional buying strategy is to allow the Cardano price to move higher before joining. Cardano price needs to breach the previous wave four at $0.66. After this occurs, a rally should ensue, possibly into $0.74 and higher. Next, a three-wave pullback should occur in lower areas of interest. A second breakout after the three-wave pullback will be crucial for investors to consider before buying the ADA price to make long-term gains. If this scenario occurs, the Cardano price would have the power to rally as high as $1.40, resulting in a 190% increase from the current Cardano price.