After an impressive crash from its early May high, the Cardano price has recovered somewhat of late. ADA had been on a consistent descending line since reaching that high but after reaching the $1.45 level on 4 July, the price dropped a staggering 40% to the July 21 low of $1.05.
This level proved to be the bottom for the Cardano price as the recovery has been equally impressive. A 30% gain from this level resulted in the $1.31 mark being reached on 26 July although there has been a slight retracement over the past 24 hours. However, the overall trend for ADA seems to be considerably bullish.
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Short Term Forecast For Cardano Price: Retracing Before Further Gains?
With the Cardano price seemingly trading in a tight range between the $1.25 and $1.31 mark, the uppermost level needs to be broken before a move upwards occurs.
Conversely, it seems like ADA will begin a retracement of around 10% in the short term before it embarks on another massive rally. It has to be said that the Cardano price rose by an impressive 31% to the $1.35-$1.37 levels before taking a pause.
This kind of move is typical in a bull rally with investors having to be cautious about a prospective 11% drop. Support levels at $1.25 and $1.19 are crucial before another leg up occurs. It is likely that the lower level will serve as the support. This is similar to the June 23 and June 26 retests.
Although this retracement is likely to lead to a new charge forward, the level of selling pressure remains important. A bearish thesis could slice through the $1.195 mark could spiral the price all the way down to the $1.10 where there is considerable support. A further selling spree could also push the price down to just above the $1 mark erasing all the recent gains.
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Long Term Price Forecast For ADA: Massive Rally Ahead?
Although the short-term expectations for the Cardano price are a slight retracement, the overall long-term expectations remain bullish. After the expected retracement to the $1.19 level, ADA is expected to jump back into play with another test of the $1.35 level.
The next move could be a retest of the $1.50 mark where buying pressure could then enter the market. Bullish momentum could then push the price all the way up to $1.75 before another retracement occurs. Overall, the ADA price is expected to touch the $2 levels again by the end of the year.
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Gerald Fenech
