The Cardano price remains rangebound as investors wait for a catalyst. ADA is trading at $1.5717, where it has been in the past few days. It has a market value of more than $50 billion and is the 6th largest cryptocurrency in the world. It sits between Binance Coin and Dogecoin that are valued at $56 billion and $43 billion, respectively.
What happened: Cardano’s price is mostly determined by the overall performance of Bitcoin, and at times, Ethereum. As such, the coin is rising, in part because BTC has staged a recovery after the El Salvador government made BTC a legal tender.
Looking ahead, the next key catalyst for Cardano could be the US inflation data that will come out later today. The numbers are expected to show that the consumer prices rose by more than 4.5% in May, in part, because of the Colonial Pipeline hack.
If the numbers disappoint, we could see higher cryptocurrency prices since it will mean that the Fed will maintain low rates and QE for longer. That will be a positive thing for the Cardano prices. On the other hand, if the CPI is better than forecasts, it will mean that the Fed could move faster. So, what next for the ADA price?
Turning to the weekly chart, we see that ADA price has consolidated lately. Still, a closer look explains why this consolidation has happened. The coin formed a cup and handle pattern, which is usually a sign of bullish continuation.
Therefore, this consolidation may be the formation of the handle section of this pattern. As such, in the longer term, the coin will likely break out higher. This will be invalidated if the price moves below the psychological level of $0.50.
Now, turning to the daily chart, we see that the ADA price has formed a broadening wedge pattern. In technical analysis, this pattern is also usually a bullish sign. In most times, the price tends to break out higher above the upper side of the wedge. Therefore, we can’t rule out a situation where the price breaks out in a bullish way in the near term. This prediction will be invalidated if the price moves below the lower line of the chart.
Please note that the daily and weekly charts are used for traders with a longer horizon. As such, in the near term, we could see some heightened volatility.
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