Recently, the Carano price rally displayed an interesting move beyond the interim resistance, which suggested a move beyond $0.43. The volume turned in a bullish favour, which helped with the rise but the latest drop raised huge concern over the rally. Although the bears have begun to exert some pressure, the technicals and the patterns suggest the ADA price rally still trades under a bullish pattern and is poised to reclaim levels beyond $0.5.
Cardano’s price continues its trade under bearish pressure but carries the possibility of a bullish breakout soon. After trading within a falling wedge since the start of the year, the ADA price reached its apex. The latest bullish push within the market triggered a 20% rise, which helped the levels to pierce beyond the upper resistance. Unfortunately, the bulls appear to have lost their grip on the rally as the price levels have dropped back to the resistance-turned-support levels.
Will the ADA price trigger a rebound or plunge back within the pattern, causing more harm to the rally?
The above chart suggests the price is at the foothills of a massive explosion, as the levels appear to have completed the retracement after breaking above the falling wedge. The RSI had initiated a bearish divergence, while the current action displays a halt in the descending trend. Besides, the supertrend continues to remain bullish regardless of the mounted bearish pressure over the markets. Therefore, the token displays the possibility of a bullish reversal, which may elevate the levels above $0.44 initially and later to $0.5.
In short, the ADA price is testing the broken resistance, which is a bullish indicator. However, a rejection from the $0.5 could also be possible, which may form a double-top pattern, hovering bearish clouds over the rally. Currently, it appears to be extremely difficult for the price to make it to $1 if the bulls do not appear to be poised to back the token with enough liquidity. However, the reclamation of bullish dominance within the markets may revive strong bullish momentum, which could further push the prices close to the milestone.
