The crypto markets are turning hopeful as the prices of the various tokens have been gaining acute strength. Since the Bitcoin price reclaimed the monthly highs above $63,300, the altcoins have become extremely bullish. Moreover, tokens like Cardano, which has been maintaining an extended bearish trend, will demonstrate a huge price action in the next few days.
The ADA price had demonstrated a monstrous run during the 2021 bull run and marked a new ATH above $3. The price has entered an extended consolidation since then, as the bounce that occurred in the first quarter of the year also failed to reclaim the levels above $1. Currently, the ADA price has been stuck below $0.5 for over a couple of months and hence the extreme price compression is expected to mark its end very soon.
To rise above bearish captivity, the ADA price is required for 3 major levels, which may certify the beginning of a fresh bullish spell.
The above chart displays the ADA price being stuck within a falling wedge after the rejection of yearly highs. The token has reached the end of the consolidation as the price is testing the upper resistance of the wedge at around $0.415. The price has already risen above $0.405, which is the first level of resistance and a day’s close above the next one, which is the upper resistance of the wedge at $0.414, may validate a rise above the bearish claws.
On the other hand, the Bollinger bands have begun to contract, which indicates a huge price movement could be on the horizon. As the volume is in favour of the bulls, a bullish breakout may be imminent, which may secure the levels above $0.45 initially. However, a sustained weekly close above these levels may help the price reach $0.5 in the coming week. The token has failed to secure these levels since the start of the year, which suggests a bearish presence at these levels.
If the bulls manage to hold these levels and rise above $0.55, then the Cardano (ADA) price may validate a rise above the bearish influence and begin to reclaim the lost levels, starting at $0.6.
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