• 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.

ADAUSDT

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. 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Scam Alert: How to avoid trouble on Terra’s LUNA 2.0 airdrop

Scam Alert: How to avoid trouble on Terra’s LUNA 2.0 airdrop

The LUNA hard fork is set to occur on May 28, followed by the subsequent airdrop of LUNA 2.0 tokens to eligible holders. Ahead of the real LUNA 2.0 airdrop, some scammers have tried to lure LUNA and UST holders to send their assets in lieu of receiving the new tokens. 

More Terra News

Bitcoin Weekly Forecast: On-chain metrics support multiplying downside threats

Bitcoin Weekly Forecast: On-chain metrics support multiplying downside threats

Bitcoin price consolidates above a weekly support level after the LUNA-induced crash on May 12. This coiling price action could cause BTC to trigger a move to the downside, further deepening the woes of investors.

More Bitcoin News

This Web3 move by Crypto.com could be a good bet for patient investors

This Web3 move by Crypto.com could be a good bet for patient investors

Crypto.com price stabilization on a high time frame chart indicates that a bottom formation could be taking place. This pattern combined with a bullish signal from a momentum indicator adds credence to the possibility of a reversal and a recovery rally for CRO.

More Crypto.com News

Why Elon Musk’s tweet failed to move Dogecoin price

Why Elon Musk’s tweet failed to move Dogecoin price

Dogecoin price slipped up as Bitcoin price triggered a sudden crash on May 26. This downswing, while serving as a great opportunity to accumulate DOGE, failed to recover alongside BTC.

More Dogecoin News

Bitcoin: On-chain metrics support multiplying downside threats

Bitcoin: On-chain metrics support multiplying downside threats

Bitcoin price consolidates above a weekly support level after the LUNA-induced crash on May 12. This coiling price action could cause BTC to trigger a move to the downside, further deepening the woes of investors.

Read full analysis

BTC

ETH

XRP