- Cardano price tags the $0.369 to $0.403 resistance zone after a 54% upswing.
- Market participants should expect a reversal of 11-17% in the price of ADA, with potential supports at $0.303 and $0.288.
- A daily candlestick close above the $0.403 resistance level will invalidate the bearish thesis.
Cardano price shows renewed strength that has allowed it to rally explosively over the last two weeks or more. This exponential run-up is currently facing a stiff resistance level that could either result in a minor pullback or a steep correction, especially if Bitcoin price drops as well.
Cardano price arrives at a crucial juncture
Cardano price has rallied 54% between December 30, 2022, and January 14, 2023. This run-up, while impressive, is knocking on $0.403 - a particular hurdle that has played a significant role in the past.
Since May 12, Cardano price has used the $0.403 level as a support level to stave off any attacks from bears. After a flip of this critical support structure into a resistance level on October 10, 2022, ADA tried a recovery rally but failed despite multiple attempts. This move further strengthened the importance of the said level.
As of January 14, Cardano price has tagged $0.369, a resistance level present just below the aforementioned variant at $0.403. Therefore, market participants need to exercise caution as the chances of a rejection or at least a pullback is likely.
Apart from the immediate support level at $0.321, the midpoint of the 54% rally is around $0.308. These are the two important hurdles that investors need to watch carefully. But depending on the selling pressure, Cardano price could slide up to the 62% Fibonacci retracement level at $0.288.
ADA/USDT 1-day chart
While things are looking bearish for Cardano price, investors need to take a cue from Bitcoin. If the largest crypto by market capitalization remains steadfast, it should allow altcoins to continue their run-up.
In such a case, Cardano price needs to produce a daily candlestick close above the $0.403 hurdle to flip it into a support floor. This development will invalidate the bearish thesis for ADA and open up the path to retest the next resistance barrier at $0.440.
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.
Follow us on Telegram
Stay updated of all the news
Bitcoin likely to remain in red through the next quarter if history is any indication
Bitcoin (BTC) price produced a monthly close at $27,210, noting a -6.92% return for May. The last-minute slide in BTC put an end to the four-month bullish streak that kickstarted the 2023 rally.
Ethereum vs. SEC: Implications of Wahis’ insider trading settlement on ETH
Ethereum (ETH) is the subject of a new controversy, with the second-largest crypto finding itself in the rut after the United States Securities and Exchange Commission (SEC) settled its insider trading case against the Wahi brothers.
Justin Sun’s TRON hits all-time high of 10.9M daily transactions, braving crypto winter
Justin Sun, the founder of TRON – one of the largest decentralized blockchain DAO ecosystems in crypto – shared a new milestone for the token on Thursday. TRON processed 10.9 million in daily transactions, hitting a record high.
Ethereum fees decline by 70% from 2023 highs as top DeFi protocols lose users
Ethereum is currently facing trouble in the spot market due to the broader market bearishness as well as investors' skepticism. But while the spot market only recently took a turn for the worse, the DeFi space has been only negative for a long time.
Bitcoin: BTC delays inevitable crash to $25,000
Bitcoin price is delaying a crash that has been brewing for roughly two weeks. A failure to push higher could result in a steep correction next week. The troubling macroeconomic conditions could be key in catalyzing and trigger a nosedive for BTC holders.