The Cardano price has found significant resistance after bouncing back sharply from last week’s low. ADA is trading at $1.5498, which is about 16% below its highest level this week. It is still more than 50% above the lowest level last week.
What happened: Cardano and other cryptocurrencies experienced a relief rally this week after they crashed sharply last week. This happened as many investors who suffered spectacular losses last week rushed to buy the bottom. At the same time, the existing fear of high-interest rates faded this week after Fed’s Randal Quarles said that the bank would wait and see before tightening policies.
Later today, Cardano and other crypto prices will react to Fed’s favourite inflation gauge. The personal consumption expenditure (PCE) is an important number that shows the level of consumption by consumers. Analysts expect the data to show that the data rose to the highest level in more than a decade. If the number is strong, it could mean that the Fed will react by tightening conditions. So, what next for ADA prices?
In my past Cardano price prediction, I noted that I was cautiously optimistic about the currency’s price. I pointed to the fact that it had managed to move above the 50% Fibonacci retracement and that it was forming an inverted head and shoulders pattern. Indeed, the current drop is part of the formation of the right shoulder of this pattern. Notably, the currency has found some support at the 38.2% retracement level.
Therefore, even in this article, I predict that the ADA price will likely bounce back later today. If this happens, the currency will likely retest its weekly high. However, a drop below the 23.6% retracement at $1.3085 will invalidate this price action.
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