• Cardano price shows a slowdown around a crucial supply barrier that ranges from $1.33 to $1.26.
  • A 13% retracement to $1.14 would allow the buyers to purchase ADA at a discount for the next leg up.
  • If buyers produce a sustained yet decisive close above $1.35, an upswing to $1.48 could ensue.

Cardano price shows the exhaustion of buying pressure as it tries to break out of an area of resistance. A failure to do so will most likely result in a pullback.

Cardano price at inflection point

On the 12-hour chart, Cardano price has tried breaching the supply zone’s upper trend line at $1.33 for more than a day. However, sellers in this area have prevented this, leading to a consolidation here.

This indecisiveness might lead to more sideways movement in ADA, at least until one side overwhelms the other. If ADA slices through the 50% Fibonacci retracement level at $1.26, which coincides with the supply barrier’s lower trend line, it will signal the start of a new downtrend.

Under these conditions, investors can expect a pullback to $1.14, which is approximately 13% lower than the current price. 

In some cases, this correction could extend up to $1.11.

This move would allow buyers to scoop up the so-called “Ethereum killer” at a discount, pushing the price higher. Hence, a reversal scenario could play out after a 13% to 15% drop.ADA/USDT 12-hour chart
ADA/USDT 12-hour chart

According to IntoTheBlock’s Global In/Out of the Money (GIOM) model, the support levels are stacked below the current Cardano price levels. Hence, a downswing is most likely to be short-lived. Therefore, the bias for ADA is bullish.

Adding credence to this bullish thesis is the presence of only one significant resistance level at $1.44. Here, roughly 76,000 addresses purchased nearly 989 million ADA and might dampen the upswing.

Therefore, clearing this level will provide Cardano price a clear path to retest current all-time highs at $1.5584.

ADA GIOM chart

ADA GIOM chart

On the flip side, if the $1.11 support level breaks down and Cardano price spends an extended period below this level, buyers would lose their leverage. Such events could shift the winds toward sellers, leading to a 7% sell-off to the swing low at $1.03.


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.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Arbitrum community opens vote for 200 million ARB Gaming Catalyst Plan proposal

Arbitrum community opens vote for 200 million ARB Gaming Catalyst Plan proposal

Arbitrum community opened a vote for its Gaming Catalyst Program (GCP) to boost support for game builders in the ARB ecosystem. The plan is to strategically allocate 200 million ARB to game projects within Arbitrum. The token has sustained its gains from the week.

More Arbitrum News

ONDO extends gains by 4% with rise in non-empty wallets, hits new all-time high

ONDO extends gains by 4% with rise in non-empty wallets, hits new all-time high

Ondo extended gains by 75% increase in the past 11 days, per crypto intelligence tracker Santiment. The token ranks among top trending assets on the platform, with a massive spike in non-empty wallets. ONDO added 4% value to its price on Sunday, sustaining 40% gains from the week. 

More Ondo News

Aptos user transactions hit record high, APT eyes over 20% gains

Aptos user transactions hit record high, APT eyes over 20% gains

Aptos user transactions in a single day reached 97.488 million. The number of user transactions and Transactions Per Second, both metrics hit a record high, supporting the thesis for price gains in APT. The rise in transaction-related metrics can be attributed to Tapos, a viral clicker game where users can earn rewards. 

More Aptos News

US Presidential candidate Donald Trump is open minded to cryptocurrency, supports right to self custody

US Presidential candidate Donald Trump is open minded to cryptocurrency, supports right to self custody

US Presidential candidate Donald Trump shared positive views on crypto, posting on social media platform, “I am very positive and open minded to cryptocurrency companies and all things related to this new and burgeoning industry.” 

More Cryptocurrencies News

Bitcoin: BTC struggles, but $80K is at striking distance Premium

Bitcoin: BTC struggles, but $80K is at striking distance

Bitcoin (BTC) price is in a good position to resume the bull rally despite the recent struggle. Optimism will restart if BTC overcomes a critical hurdle and flips it into a foothold. In such a case, the pioneer crypto will be slated to push to a new all-time high (ATH). 

Read full analysis

BTC

ETH

XRP