The price of Cardano saw a huge drop during the week, which caused it to fall below crucial levels.
Fortunately, this correction is above an area of significant demand that will likely trigger a wave of buying, pushing ADA higher.
The price of Cardano has almost halved from its high of $3.11. ADA is currently trading at $1.86 and is quickly approaching the 6-hour search zone of $1.68 to $1.79.
This support area is important in determining the altcoin bias. As the price of Cardano broke through the bottom of the $1.91 range, it is in the deep discount zone and that means the bears will potentially rest.
A successful bounce out of the search area mentioned above will likely bring the ADA back above the bottom of the range. Moreover, Cardano price may retest the psychological level of $2, which is about 10% upside from $1.79.
ADA can test the $2.08 ceiling and collect liquidity that sits above it. This move would represent a 15% climb.
Cardano’s upside depends on whether the downside is limited by the $1.68 to $1.79 demand zone. However, if ADA creates a lower bottom below $1.68, it will invalidate the bullish thesis.
This development could trigger a 12% crash to the immediate support level of $1.46.