Cardano ADA's price has been on a downtrend since June 3 without any substantial higher highs, suggesting that the bears are plaguing the Crypto markets. As Cardano ADA trades inside a tight range, it consolidates between two converging trend lines and anticipates a massive breakout.

Cardano ADA's price was trading above the 50% Fibonacci retracement level at a price of $1.47 until mid-June. However, this changed as the ADA price slid below it on June 18. Since then, the Cardano price action has been in the form of lower highs and higher lows, indicating a tightening of the trading range.

Cardano price prepares breakout

Typically, developments like these result in massive moves.

While the traditional breakout looks for the Cardano to slice through the inclined/declined trend lines, investors should pay close attention to the immediate price swing points, which will help discern where ADA might be heading.



Assuming Cardano ADA price breaks lower, it will tag the support at $1.24. If the selling pressure continues to build up, ADA price might sweep the lows at $1.20. This downswing collects liquidity, which is a telltale sign for the start of an upswing. 

Therefore, investors can expect a 10% price correction and a sweep of $1.20, followed by a 16% uptrend that retests the resistance level at a price of $1.40. Breaching this level opens the possibility of retesting the 50% Fibonacci retracement level at $1.47.

The bullish thesis explained above will be in jeopardy if Cardano's ADA price fails to climb above $1.20. Such a move will reveal that the sellers are dominant and are absorbing the buying pressure.

In such a case, Cardano ADA will likely revisit the subsequent swing low at $1.11 from June 23. A breakdown of this level barrier will invalidate the optimistic narrative and kick-start a downtrend that could push Cardano's price to the range low at $1.

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