- Cardano’s price experienced an approximately 53% weekly surge after hitting the demand zone, stretching from $1.02 to $1.20.
- The upward move has ADA in the $1.54 – $1.76 supply area, pausing its upward rally.
- A 6-hour candle close beyond $1.76 will violate the bearish case.
Cardano (ADA) saw a remarkable price surge within the last week. For now, the altcoin shows slowdown signs as it nears a critical hurdle. Enthusiasts may expect Cardano to correct and mend before launching another upward move.
ADA Price Appears Weary
Cardano recorded a 53% ascent after overcoming the demand zone in the $1.02 – $1.20 range on 10 January. This impressive surge formed a swing high near $1.64 within the 24hr supply region that extends between $1.53 and $1.76.
Surprisingly, this zone comprises the weekly resistance zone of $1.68, translating to a formidable obstacle. With that, Cardano’s downward path appears smooth for the alternative coin. Though such a development means bearishness, ADA needs to launch another uptrend.
Market participants may expect ADA to hit the weekly barrier of around $1.46, exploring the downward journey. Meanwhile, this footing will hardly absorb the whole selling strength. With that, Cardano fans might expect further drops towards the value level of $1.31. That trip will translate to an 18% plunge for the Ethereum Killer.
IntoTheBlock’s GIOM model appears to support Cardano’s retracements. The metrics indicate a colossal underwater investors’ cluster that might halt any upswings. The obstacle stretches between $1.71 and $2.00, the zone where nearly 379,000 addresses bought 3.77 billion Cardano tokens at a $1.87 average price. This territory corresponds with the technical view’s resistance barriers, authorizing the bearish picture.
Though this seems temporarily unattractive for ADA price, a 6hr candle close beyond the 24hr supply region’s topside level at $1.76 will cancel some selling rates, invalidating the bearish case. Such a case may seem potential because of the latest surge in daily addresses. The DAA surged from 123,100 on 6 January to 135,080 on 17 January. The 9.7% uptick shows investors’ interest in $ADA at its current valuation levels.
Rising past $1.76, ADA will encounter many weekly resistance zones at $1.87, $2.95, and $2.21. That means Cardano will experience challenges in its upswings.