• Cardano price rallied by a little more than 3% to trade at $0.386.
  • While indicators highlight an uptrend, bullish pressure is necessary to push the price toward the November 2022 high of $0.428.
  • Failure to breach immediate resistance and declined below $0.308 would invalidate the bullish thesis.

Cardano price has maintained a rather low profile throughout the month of January as the third-generation cryptocurrency only registered a 57% rise over the last four weeks. However, this is expected to change over the next few days as Cardano prepares for one of its biggest developments. 

Cardano price could react to the stablecoin launch

Cardano price, at the time of writing, was lingering right above the immediate resistance of $0.381 as the value of altcoin reached $0.375. The upcoming launch of the network’s stablecoin Djed is expected to further this rise and push the altcoin to tag $0.428.

This is possible as the Parabolic Stop and Reverse (SAR) indicator is highlighting an active uptrend presently. The presence of the blue dots of the indicator below the candlesticks is evidence of the same. Even then, buyers need to maintain their stance to ensure the altcoin doesn’t lose its bullish momentum.

This would allow Cardano price to keep above $0.381 and tag the critical resistance at $0.402. Flipping this level into a support floor is crucial for ADA as that would enable the altcoin to rally further and tag the November 2022 highs of $0.428.

Nevertheless, the possibilities of a failed breach are also high at the moment as the rest of the market is in a cooldown. In the case where Cardano price fails to flip the resistance into support, traders must watch the altcoin for a sudden decline to minimize their losses. A fall below the immediate support level at $0.344 would push ADA toward $0.325.

ADA/USD 12-hour chart

ADA/USD 12-hour chart

Falling through this support level would give Cardano price another shot at bouncing off the critical support level at $0.308. However, a daily close below this level would invalidate the bullish thesis, bringing ADA to $0.298, the price it was at post November 2022 crash.


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.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.

More Bitcoin News
Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.

More Litecoin News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.

More Cryptocurrencies News
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.

More Cryptocurrencies News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP