Cardano price after showcasing a successful rally above $2.4 slumped down to the lower levels, forming a bottom close to $1. No doubt the price declined with a huge margin, yet more upside swing may be fast approaching.
Currently, ADA price is showcasing a huge relative strength as it rejected the local lows and bounced off gaining more than 10% since the early trading hours. The price is heading strongly towards the Fibonacci retracement levels around $1.48 in order to recover the previous day’s losses.
However, this upswing needs to clear the resistance levels initially at $1.327 and later at $1.41 which might be a little crucial. As the successful surge above these levels may trigger the rally to head towards the higher highs. Initially around $1.57 and later at $1.74.
As far as the price movement, it was following a parallel upside channel to reach the peak above $2.4. However, as the downslide began, the price initiated trending within an ascending triangle. The previous day’s slump was feared to break the lower levels of the channel. However, the perfect bounce kept the bullish momentum alive.
Yet, the price needs to keep the bullish trend intact and clear the upper resistance levels above $1.2. So that the price could smash the upper trend line of the triangle at $1.40. Once these levels are cleared, new upper limits may be tested within a short time frame.
As mentioned in the chart, the $1.41 to $1.61 zones are the most pivotal zones for the Cardano price. Once the price breaks the triangle, the next test would be to pierce through the above-mentioned zones. Further, one can assume the resumption of the ADA price rally in order to test the higher highs.