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- Cardano price pierced the supply zone that extends from $1.44 to $1.5 as it rallied 18% in nearly four days.<\/strong><\/li>\n
- The MRI flashed a sell signal, indicating that this uptrend is at its end.<\/strong><\/li>\n
- A 10% pullback to the trading range\u2019s mid-point at $1.304 will most likely occur.<\/strong><\/li>\n<\/ul>\n
Cardano price is currently experiencing a tussle between the bulls and bears as it enters a crucial supply zone<\/a>. Therefore, investors can expect a minor pullback before the bulls make a comeback.<\/p>\n
Cardano price at an inflection point<\/strong><\/h2>\n
Cardano price rallied roughly 18%<\/a> from its August 3 swing low at $1.26 to set up a swing high at $1.48. While this uptrend was expected, the Momentum Reversal Indicator (MRI) flashed a sell signal in the form of a red \u2018one\u2019 candlestick on the 12-hour chart.<\/p>\n
This technical formation forecasts a one-to-four candlestick correction. Therefore, investors can expect ADA to pull back shortly.<\/p>\n
The $1.374 support level is the most likely candidate to absorb the selling pressure from the correction, but in some cases, a breach of this level could extend the retracement to $1.304, the trading range\u2019s midpoint.<\/p>\n
This move would represent a 10% downswing from the current position, $1.46.<\/p>\n
![\"ADA\/USDT](\"https:\/\/editorial.fxstreet.com\/miscelaneous\/ada-637639936636081561.png\")
<\/a><\/p>\nADA\/USDT 12-hour chart<\/small><\/p>\n
While an upswing might likely originate from $1.304, a failure to do so might turn the situation grim and push Cardano price down to $1.251. This development will favor the bears, but the bearish thesis might face invalidation if the bulls ignore the sell signals and push through $1.5.<\/p>\n
A decisive 12-hour candlestick close that flips $1.5 level into a support barrier will invalidate the pullback narrative and restart the uptrend<\/a>.<\/p>\n
In such a case, ADA might rally to the next significant level, $1.61.<\/p>\n
\n - The MRI flashed a sell signal, indicating that this uptrend is at its end.<\/strong><\/li>\n