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Elevenews

01/18/2022

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Cardano Price Prediction: ADA to retrace 17% after recent uptrend

Cardano price rose roughly 53% in a week after tagging the $1.02 to $1.20 demand zone. This uptrend has pushed through the daily supply zone, extending from $1.54 to $1.76, pausing its rally. A six-hour candlestick close above $1.76...

Cardano Price Prediction: ADA to retrace 17% after recent uptrend
  • Cardano price rose roughly 53% in a week after tagging the $1.02 to $1.20 demand zone.
  • This uptrend has pushed through the daily supply zone, extending from $1.54 to $1.76, pausing its rally.
  • A six-hour candlestick close above $1.76 will invalidate the bearish outlook.

Cardano price witnessed an exponential increase over the past week and showed signs of slowdown as it approaches a massive hurdle. Investors can expect ADA to retrace and recuperate before it embarks on another leg-up.

Cardano price looks weary

Cardano price rose 53% after piercing the $1.02 to $1.20 demand zone on January 10. This impressive uptrend set a swing high at $1.64 inside the daily supply zone, extending from $1.54 to $1.76.

Interestingly, this area also harbors the weekly resistance barrier at $1.68, making this blockade a formidable one. Therefore, the logical outlook for ADA is a retracement. Although the scenario might seem bearish, it is necessary for the so-called “Ethereum killer” to kick-start a new upswing.

Investors can expect Cardano price to retest the weekly support level at $1.46 on its way down. It is unlikely that this foothold will absorb all of the selling pressure, so market participants can expect ADA to slide lower and tag the $1.31 platform.

In total, ADA this journey would constitute an 18% descent.

ADA/USDT 6-hour chart

ADA/USDT 6-hour chart

Supporting this retracement thesis for Cardano price is IntoTheBlock’s Global In/Out of the Money (GIOM) model. This index shows massive clusters of underwater investors that could stop the uptrend dead in its tracks.

This hurdle extends from $1.71 to $2, where roughly 379,000 addresses purchased 3.77 billion ADA at an average price of $1.87. This area overlaps with the resistance barriers described from a technical standpoint, confirming the bearish outlook.

ADA GIOM

ADA GIOM

While things are looking temporarily grim for Cardano price, a six-hour candlestick close above the daily supply zone’s upper limit at $1.76 will alleviate a part of the selling pressure and invalidate the bearish thesis.

Market participants should consider this scenario due to the recent increase in daily active addresses (DAA) from 123,100 on January 6 to 135,080 on January 17. This 9.7% increase indicates that investors are interested in ADA at the current price levels.

ADA DAA 

ADA DAA 

Investors should note that beyond $1.76, Cardano price will face multiple weekly resistance barriers at $1.87, $2.04, $2.21. Therefore, the uptrend will not be a walk in the park and will likely be choppy.

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https://elevenews.com/2022/01/18/cardano...

Disclaimer: Cardano Feed is a Decentralized News Aggregator that enables journalists, influencers, editors, publishers, websites and community members to share news about the Cardano Ecosystem. User must always do their own research and none of those articles are financial advices. The content is for informational purposes only and does not necessarily reflect our opinion.


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