- 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.
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.