- Cardano price tags the $0.369 to $0.403 resistance zone after a 54% upswing.
- Market participants should expect a reversal of 11-17% in the price of ADA, with potential supports at $0.303 and $0.288.
- A daily candlestick close above the $0.403 resistance level will invalidate the bearish thesis.
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.
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