Cardano's price rallied significantly over the past 24 hours in an attempt to recover the losses piled up after the recent crash. Although a minor retracement level seems likely after a quick run-up, the uptrend appears to be intact.
Cardano ADA's price rallied roughly 16% over the past 24 hours and has flipped a crucial resistance level at a price of $1.329 into a demand barrier. This move will allow the buyers to prepare for the next leg up. Therefore, investors can expect a minor retracement toward the support level at a price of $1.327 before rallying higher.
As for the upside potential, Cardano ADA's price looks primed to retest the next supply barrier at $1.451 and the 50% Fibonacci retracement level at $1.481.
However, considering the overall market structure for Cardano ADA and Bitcoin price, it is likely for the so-called “Ethereum killer” to tag the lower boundary of the supply zone at $1.525, which is roughly 15% of the support level at $1.327.
Due to the recent crash, investors have recycled their investments from altcoins to the flagship cryptocurrency. This development is apparent when looking at the Bitcoin BTC dominance chart. Hence, the events that have taken place over the last few days have made altcoins more correlated to BTC.
Likewise, the correlation of ADA to BTC pair has increased from 0.29 to 0.62 over the past week. This 113% increase indicates that Cardano ADA price moves are influenced by Bitcoin price.
Since Bitcoin BTC is showing a bullish bias, market participants can expect ADA to follow suit.
Supporting this upswing is IntoTheBlock’s In/Out of the Money Around Price model, which indicates strong clusters of investors present below the current ADA price level.
Moreover, 215,000 addresses that purchased 3.18 billion ADA coins at an average price of $1.53 are “Out of the Money.”
Therefore, there is a high chance that Cardano's price will likely hit the intended target.
While things seem to be working in favor of Cardano's price, a breakdown of the support at $1.327 will put a dent in the upswing narrative.
However, a breakdown of the June 23 swing low at a price of $1.969 will invalidate the bullish thesis and kick-start a 15% sell-off to the range low at $1.01.
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