The crypto markets are experiencing an extended bearish action as the bulls remain passive, not necessarily facing exhaustion after the latest rise. The pullback has wiped out the gains incurred in the past couple of days and may create a massive FUD among the market participants. Meanwhile, the technicals suggest the ADA price is currently consolidating but may soon trigger a massive rebound above $1.
Now the question arises: whether the Cardano price will be able to sustain above $1?
In recent times, it is evident that the ADA price rally has failed to defend the support at $1 and faced a pullback each time it surged above $1. This supports the claim of bears capitulate the rally at these levels and hence, after constantly exerting pressure at this range, they may soon turn weak. This may be when the price breaches the resistance but a notable rise in the volume is also required to do so.
Adding icing to the cake, the technicals flash bearish signals that may drag the levels still lower. However, this move may trap the bears as a huge rebound is fast approaching.
The weekly price action of ADA appears to be bearish as the token is testing the lower support without enough buying pressure. Secondly, the MACD displays a drop in the selling pressure with the lines about to undergo a bearish crossover. Besides, the RSI failed to surpass the upper threshold, resulting in the levels dropping below 70. At this point, if the bulls manage to hold the support, then the bull flag pattern could be in play, which may initiate a strong rise to the resistance.
Otherwise, a failure could force the price to test the lower support close to $0.7, exhausting all the selling pressure. Therefore, the ADA price may then trigger a strong rebound, while the bulls may try hard to maintain a healthy ascending trend later. This could delay the token to reach $1, which may further differ the possibility of marking a new ATH in 2025. Hence, the upcoming week could be pretty important for the Cardano (ADA) price rally, as a weekly close within the range may revive the bullish possibilities.
Credit: Source link