- Cardano expects a sustained surge above the $ 3 mark.
- The daily technical setup remains in favor of the ADA bulls.
- 61.8% Fibonacci level at $ 2.389 is the level to beat for Cardano bears.
After encountering rejection again at $ 2.96, Cardano price is feeling the pull as it drops near $ 2.80, down about 4% on the day.
ADA / USD bounced back towards the all-time high of $ 3.026 on Friday, although it looks like the bulls will likely make a few more tries before resuming the broader uptrend.
Cardano’s corrective downward move could likely be viewed as short-lived as the underlying bullish momentum remains intact before hitting the September 12th Alonzo hard fork.
The third most popular crypto coin is up 14% over the week and will see its sixth consecutive weekly gain.
ADA / USD pulls back to usher in a new upswing
After Monday’s record rally, market participants were expected to retracement briefly in ADA price before the bulls consider the next upswing to make new lifetime highs.
Looking at Cardano’s daily sticks, the corrective decline encounters strong demand at the 61.8% Fibonacci (Fib) retracement level of a new rally on Jan.
Therefore, a daily close below the latter is likely to add credibility to reversals from higher levels, revealing strong support in the $ 2.19-2.15 area that is the confluence of the 21-day bullish moving average (DMA) and the 50th Represents% Fib Levels.
Although the initial support is now marked at 78.6% Fib of the same surge at $ 2.668.
ADA / USD: daily chart
Note that the daily RSI retracement from the overbought region, now at 69.03, suggests that the pullback could likely be a good buying opportunity as ADA price remains on its way to setting new bullish targets.
Should the ADA bulls break the record highs at $ 3.026, the next relevant hurdle will be seen at the 127.2% Fib level at $ 3.477.
