- Cardano price shows signs of exhaustion on the four-hour time frame, suggesting a potential retracement to $0.269 and $0.279 support levels.
- A bounce off these levels could yield a minimum gain of 19.52% as it retests the $0.334 hurdle.
- A four-hour candlestick close below $0.252 that flips it into a resistance level will invalidate the bullish thesis for ADA.
Cardano price has been on a recovery rally for two weeks, but the bullish momentum and volatility seem to be waning owing to the low volume during the weekend trading sessions. Regardless, from a short-term perspective, a minor retracement could allow ADA bulls to regroup and restart the recovery bounce.
Cardano price ready to move higher after minor retracement
Cardano price crashed a whopping 44% in early June, going from $0.381 to $0.220 in just five days. But after a local bottom formation on June 10, ADA has bounced 34%, signaling a strong recovery.
But due to the recent uptrend, bulls seem to be exhausted and are taking a break, which could trigger profit-taking from short-term holders, leading to a retracement. The contenders for supporting this correction include the $0.269 and $0.279 barriers.
A bounce off the $0.279 support floor could be key in extending the ongoing recovery rally. A successful spike in buying pressure over the next week could propel Cardano price by 19.52% to retest the next critical hurdle at $0.334.
In a highly bullish case, ADA could extend higher and tag the $0.347 level or the range high at $0.381.
ADA/USDT 4-hour charr
Although the bullish outlook for Cardano price makes logical sense, investors need to turn their attention toward the equal lows formed at $0.252. A four-hour candlestick close below the aforementioned level that flips it into a resistance barrier will invalidate the bullish thesis for ADA.
Such a development could see Cardano price correct lower and retest the range low at $0.220.