Cardano Price Analysis: Rejection at $1 and Potential Reversal
The Cardano price has recently experienced a rejection at $1, but it remains in an upward trend, forming higher highs and higher lows. This trend is a positive sign for the cryptocurrency, indicating a potential bullish reversal. The next low can be expected to develop between $0.86 and $0.90, which may confirm a bullish reversal and set the stage for a new test of $1.
After testing the key rejection on August 14, the Cardano price was suspended and left a long upper wick in the daily chart. Since then, the price has exceeded the support of $0.90. Impulse indicators, such as the RSI and MACD, indicate a blast strength, with the RSI holding at 62 on the daily chart and the MACD showing signs of bullish impetus. The price also hovers around 1% above the 7-day EMA, which fluctuates dangerously close to a potential breakdown.
Higher Highs and Higher Lows
Since its base of $0.51, the Cardano price has formed a number of higher highs and higher lows, the second double floor in a previous double bottom formation, which broke out at $0.86. This upward trend remains intact, and a strong jump from the support zone of $0.86 to $0.90 would confirm a higher low, keep the bulls under control, and set the stage for a new test of $1. The potential for the next high-high can achieve $1.10 to $1.15.
Source: Tradingview
Cardano Futures Volume at 5-Month High
If the upward structure is continued, the Cardano price could extend its rally towards the region of $1.50 in the coming weeks, according to Ali Martinez, an analyst from Crypto. The Cardano Futures volume supports the bullish outlook and has increased to $6.96 billion, its highest participation by derivative retailers. In the past, increasing futures activity often precedes stronger spot moves, which indicates that the current retreat is an ideal opportunity to “buy the dip” in front of a large rally from Cardano.
For more information on the Cardano price and its potential reversal, visit https://crypto.news/cardano-price-heats-up-for-reversal-confirmation-as-futures-volume-hits-5-month-high/
