Cardano ADA price is currently experiencing a tussle between the price bulls and bears as it enters a crucial supply zone. Therefore, investors can expect a minor price pullback before the bulls make a comeback.
Cardano ADA's price rallied roughly 18% from its August 3 swing low at a price of $1.26 to set up a swing high at a price of $1.48. While this price uptrend was expected, the Momentum Reversal Indicator flashed a sell signal in the form of a red ‘one’ candlestick pattern on the 12-hour chart.
This technical pattern formation forecasts a one-to-four candlestick price correction. Therefore, investors can expect ADA to pull back shortly.
The $1.374 support level is the most likely candidate to absorb the selling pressure from the price correction, but in some cases, a breach of this support level could extend the retracement to a price of $1.304, the trading range’s midpoint.
This move would represent a 10% price downswing from the current position, $1.46.
While an upswing might likely originate from a price of $1.304 level, a failure to do so might turn the situation grim and push the Cardano ADA price down to $1.251. This development will favor the bears, but the bearish thesis might face invalidation if the price bulls ignore the sell signals and push through $1.5.
A decisive 12-hour candlestick pattern close that flips $1.5 into a support level barrier will invalidate the pullback narrative and restart the uptrend.
In such a case, the Cardano ADA price might rally to the next significant level, $1.61.
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