Cardano price is consolidating between two converging trend lines, which show that a volatile move is coming soon.
ADA 4-Hour candle closing above $1.40 will confirm an uptrend but a break down below $1.20 would signal downtrend.
Cradano is facing a downtrend since June 3 without making any higher highs which show that bear are in control. As ADA is trading in a tight range between two trend lines, it show a massive breakout is coming. Such development mostly result in massive moves, as this breakout can go either way.
In bullish case, a breakout would push ADA price to $1.50, where 200 day moving average (Shown in Red) is waiting to act as a resistance. This is 11% increase from currently trading price of $1.3360. But as ADA price is consolidating in between two trend line for some days, we can expect a move more than 11%. In such a case ADA price can visit $1.80, which is 38% increase from the current price. $1.80 is acting as a strong resistance since 20-5-2021, so crossing $1.80 will not be easy for bulls.
In bearish case if price falls below the trend lines, we can see a sharp decline. First ADA support will come at $1.20, If $1.20 is unable to act as support we can visit June 23 lows of $1.018.
At the time of writing over all crypto market is doing good, with ETH trading above $2000 and BTC above $35000. Under such favorable condition there are high chances that ADA price will break upward to touch $1.50 and then $1.80.
Resistance: $1.40, $1.50
Support: $1.20, $1.018
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