Cardano (ADA) At Inflection Point, Ready to Retest $1.45

ByDawn Pipkin

Jan 16, 2022
  • ADA price has witnessed a 26% increase to $1.35 from 10 January to 13 January.
  • As Cardano retests the barrier at $1.35 for the 4th time, ADA might see a breakout, catalyzing another run-up.
  • Breaching the $1.20 weekly support might ruin the bullish narrative.

Cardano (ADA) witnessed a massive increase in buying momentum within the last five days and seems ready to continue the trend. However, the alternative token should overcome one critical obstacle to show bulls’ dedication for new higher highs.

ADA at Break or Make Point

Cardano saw its price surging by nearly 26% between 10 January and 13 January, forming a swing peak around $1.35. The altcoin corrected 10% soon before reversing the trend to retest the barrier at $1.35 once more.

The alternative coin has tagged the barrier five times from 4 January to 16 January. There’s a high possibility the zone has faded. That way, the latest retest might break through. Presuming Cardano bulls overpower the level, ADA will rise to the barrier at $1.38 and collect buy-stop liquidity beyond the mark.

Massive bullish actions will see ADA rallying towards the weekly resistance zone beneath the 4hr supply region, stretching between $1.46 and $1.52. The alternative coin may fail to retest $1.52, but it has a high probability of tagging the hurdle at $1.46. That would represent a 9% ascent from ADA’s current price.

Such a move might mean Cardano’s readiness to reverse the 5-month downward trend. That way, ADA enthusiasts can expect a bullish regime in the coming trading sessions.

Meanwhile, the coin’s failure to overcome the barrier of around $1.35 will mean a challenging obstacle. The resulting rejection might translate to downtrends, with ADA retesting the weekly support floor at $1.20. Buyers can step up at this level to launch a comeback.

Nevertheless, a 4hr candlestick close under the level will ruin the optimism, invalidating ADA’s bullish case. That might see the alt bounce off the daily demand region, extending between $1.20 and $1.02.

Cardano will depend on the broad market sentiment for decisive moves. While publishing this blog, the crypto space presents a bullish outlook, the global market cap wavering on a 0.27% 24hr gain at $2.06 trillion.

The information provided on this website should not be interpreted as financial or investment guidance and may not embody the perspectives of Forex Tools Trader or its contributors. Forex Tools Trader does not hold responsibility for any financial setbacks experienced due to the use of information provided on this website by its writers or patrons. It's essential to thoroughly investigate and make informed decisions before entering any financial commitments, particularly concerning third-party reviews, presales, and similar ventures. The content you are viewing may be sponsored content, read our full disclaimer to learn more.

Don't Miss Out!

Artificial Intelligence Trading Software

CypherMindHQ Trading Robot, OpenAI (ChatGPT4) Enabled - The Best AI Trading System Ever Created

Sign Up

Try Crypto Engine With a Trusted Broker