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Cardano Price Prediction: ADA bulls look for a 15% breakout

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  • Cardano price has moved higher twice after a breakout of the parallel descending channel.
  • Bulls are in a tricky position as a failure to break above the $2.39 barrier could end in a downtrend.
  • Depending on the relative close, ADA could experience a 15% breakout in either direction.

Cardano price was in a strong downtrend after the September 2 high. However, this correction ended in a bullish technical formation. ADA broke this pattern on September 23, but so far has not been able to restart a bullish rally.

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Cardano price at the turning point

After breaking above the upper trend line of the parallel bearish channel, the price of ADA rose by 11%. While this rally broke above the $2.39 resistance level, the bulls were unable to sustain this level, leading to a 17% decline in value.

At that point, ADA consolidated for a while and managed to rise by 15%. However, buyers seem exhausted as the so-called “Ethereum killer” is stalling even before retesting the $2.39 resistance barrier.

ADA possible scenarios

If the price of ADA breaks $2.39, it will have to face the 50% Fibonacci retracement at $2.51. After that, the price of ADA will encounter the high-probability reversal zone between $2.65 and $2.86.

Market participants are likely to target the September 11 high of $2.75 if ADA continues to break these barriers.

Therefore, bulls are in for a 15% rally infested with hurdles, making this uptrend a high resistance liquidation run.

On the other hand, if ADA price fails to break the $2.39 resistance level, it will indicate a weakness among buyers and could likely end in a 15% drop to the $1.98 support.

A break of the $1.91 demand level, however, will invalidate the bullish thesis and trigger a drop to $1.81 or $1.76 level.

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Michelle D. Madsen

Michelle D. Madsen graduated from the University of Westminster and has been deeply involved in the world of finance ever since. She has worked as a Broadcast Journalist hosting various news shows and informative webcasts about the financial markets. Since 2004 she has also been writing for Metanews daily, her attention to detail, and her in-depth knowledge of the financial markets have led her to cover Foreign Exchange and commodities. The world of finance has changed in the last few years with the introduction and rising popularity of cryptocurrencies. She has in no means been left behind, adding this to her bank of intellect and is now also an expert in cryptocurrencies. For the last ten years, Ms. Madsen has been engaged in the financial market. She has notedly written a great number of incredibly informative reviews for the crypto exchange and forex brokers. Her wealth of knowledge has enabled her to become a leading expert in the field. She continues to inform the public writing up-to-date, thorough reviews for the readers of Metanews as she has for the last decade.
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