Cardano price is showing an interesting setup, while trying to rise above an important support level. It is possible that ADA could start an upward rally from this level.
This is facilitated by the future Vasil hardfork, which is scheduled to debut in June. This is an update that will expand the capabilities of Cardano and the Plutus smart contract platform.
Cardano’s price is now facing tremendous pressure from sellers and is approaching the midpoint of a range of $0.487 to $0.614 at $0.556. A pullback from that barrier could lead to a breakout of the range low at $0.487.
Assuming that this minor downtrend occurs, it would signal that the market is being manipulated by sophisticated investors. This move would likely be followed by a quick reversal to the high of the range at $0.614.
This represents a gain of 25% and a point where a local top may be formed. However, if buyers keep opening positions, the rally may extend to $0.677, which would bring the total gain to 40%.
Supporting the bullish thesis on ADA are accumulations of crypto-kits owning between 100,000 and 1,000,000,000 tokens. This category of holders increased their holdings from 20,562 to 20,637, a jump of 0.33%.
Despite the optimism that Cardano’s price momentum inspires, if sellers target bitcoin in the short term, there’s a good chance that ADA will follow.
If ADA closes the four-hour candle below $0.471, that would invalidate the bullish thesis, creating a lower low. This move would open the door for sellers to collapse ADA by 15% to $0.397.