Cardano price bullish reversal pattern could launch ADA toward $1.96
|- Cardano price has slid lower following a break above a critical line of resistance.
- A 30% rise toward $1.96 continues to be on the radar, given by the prevailing chart pattern.
- However, a slice below $1.39 may spell trouble for the bulls.
Cardano price has sliced above a crucial resistance barrier, which validated a bullish chart pattern. However, momentum declined as ADA retraced slightly, testing a critical line of defense before the Ethereum killer targets bigger aspirations.
Cardano price faces stiff resistance ahead
Cardano price has printed a falling wedge pattern on the daily chart, projecting a bullish forecast for the bulls. ADA validated the prevailing chart pattern which put a 40% ascent on the radar as the token sliced above the upper boundary.
While Cardano price has broken out of the governing technical pattern strongly, ADA has retraced slightly and is discovering reliable support before climbing higher.
The obstacle for Cardano price is at the 78.6% Fibonacci retracement level at $1.51. Padding this resistance is IntotheBlock’s In/Out of Money Around Price (IOMAP) model based on volume, which suggests that the biggest cluster of 208,300 addresses purchased 3.38 billion ADA at an average price of $1.51.
ADA may face another headwind at the 100-day Simple Moving Average (SMA) at $1.65, then at the December 3 high at $1.72, coinciding with the resistance line given by the Momentum Reversal Indicator (MRI), then at the 200-day SMA at $1.82.
However, if selling pressure increases, Cardano may find immediate support at the 61.8% Fibonacci retracement level at $1.42. If ADA continues to slide lower, the token may fall toward the upper boundary of the governing technical pattern at $1.39.
ADA/USDT daily chart
Investors should note that if Cardano price drops below the aforementioned line of defense, the bullish chart pattern may be voided. ADA could continue to decline the 50% retracement level at $1.35, intersecting with the 50-day SMA.
An additional spike in sell orders may see Cardano price plunge toward $1.28, at the 38.2% Fibonacci retracement level, which sits near the 21-day SMA.
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