- ADA price nears the demand zone at $1.22 – $1.35 and 50-day Simple Moving Average confluence near $1.33, suggesting a new surge.
- Market players can wait for a 40% upsurge that slices past the supply zone at $1.54 – $1.74, retesting the obstacle at $1.87.
- Violating the support floor around $1.20 will cancel ADA’s optimistic case.
Cardano (ADA) displayed bullish strength within the past week, printing a higher high. However, the upward move encountered massive obstacles, translating to a stiff retracement towards the confluence of support. For now, the ETH-killer appears ready to launch a similar upsurge.
ADA Price Prepares to Comeback
Cardano’s price gained around 45% between 10 January and 18 January, formulating a swing high near $1.64 within the daily supply territory, stretching between $1.54 and $1.76. The resulting correction had ADA losing 19% towards the recently formed demand territory in the $1.22 – $1.35 range.
Surprisingly, the support floor houses the 50-day SMA at $1.33, translating to a bullish retest. Therefore, enthusiasts may expect a reversal from ADA around the level, resulting in uptrends. The initial obstacle Cardano will encounter with this rally is the highlighted daily supply territory.
Overcoming the obstacle will clear the path toward the 200-day Simple Moving Average near $1.82. ADA retesting this hurdle will mean a 36% increase. If the bullishness persists, ADA might inch higher to touch the weekly resistance obstacle near $1.87, translating to a 40% surge.
Though things seem bullish for ADA price, losing the recently created demand zone in the $1.22 – $1.35 range will show buyers’ weakness. A daily candle close beneath the weekly support zone at $1.20 will nullify the bullish case. Such a development might drag Cardano lower towards the support territory, ranging between $1.02 and $1.20.
For now, ADA seems prepared for a rebound, eyeing a 40% upswing. Such a move will see the alternative coin hitting the obstacle at $1.87. However, bulls should overcome some hurdles before realizing the bullish case. Breaching the support at $1.20 will ruin the bullish outlook in Cardano price.
