Cardano price could retrace to these key levels as ADA bulls pause before critical hurdle

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.