Should Cardano holders prepare for another upswing or a steep correction

Cardano price shows a slowdown in momentum after a quick run-up from a psychological level. This move faces a massive blockade that could make or break the uptrend for ADA.

Cardano price at inflection point

Cardano price action from February 19 to March 23 set up a V-shaped valley known as “Adam.” This move was followed by a rounded bottom formation referred to as “Eve”. The Adam and Eve formation is a bottom reversal pattern that forecasts a 25% upswing, determined by measuring the depth of the valley and adding it to the breakout point at $1.

Based on the theoretical forecasting methods, the target for ADA is $1.26. After its breakout on March 23, Cardano price quickly rallied 23% but failed to reach its destination. This lack of momentum was due to the bearish breaker formed on January 13. This area extends from $1.22 to $1.35 and is a major hurdle in the bulls’ path.

Clearing this blockade will allow Cardano price to reach its Adam and Even target at $1.26 and trigger a rally to $1.60. In total, this move would constitute a 35% upswing from the current position at $1.17.

ADA/USDT 1-day chart

Supporting this move for Cardano price to $1.60 is IntoTheBlock’s Global In/Out of the Money (GIOM) model. This index shows that the bulls are already grappling with a major hurdle at $1.17.

Clearing this area opens the path for ADA up to $1.56, where roughly 583,000 addresses that purchased 6.18 billion ADA are “Out of the Money.” Therefore, a move into this area could trigger a spike in selling pressure from the market participants trying to break even. Hence, the upside for Cardano price is capped around this range which extends from $1.43 to $1.70.

ADA GOM

While the technicals point to a tough road ahead for Cardano price, investors need to be prepared for a move in either direction.

A daily candlestick close below $1 will invalidate the bullish thesis for Cardano price and end the Adam and Eve setup. This development could also open the path for bears to crash ADA to $0.85.