Cardano (ADA) Provides Buy Opportunity Before 40% Upswing
- Cardano price may offer a buying opportunity around the bottom support zones before bulls attempt to reverse the underperformance period.
- A vital technical indicator shows sellers exceeding buyers in the marketplace.
- ADA slicing past $1.39 may reveal a 40% price surge.
Cardano (ADA) might drop to lower zones before bulls launch a recovery to alter the downward trend. Meanwhile, the ETH killer might fall towards a 10 January low of $1.07 before plunging towards the prevailing chart pattern’s bottom boundary at $1.04.
ADA Weakens amid Increasing Bearish Momentum
The daily chart shows ADA price creating a declining wedge setup as Cardano continues to form lower highs and lower lows. TRIN suggests more sellers than buyers in the alt’s market, confirming that ADA may fall further to test critical support zones before an upcoming recovery changes the narrative.
Cardano’s initial defense line lies at the 4 December low at $1.18. The alternative token might secure another footing at 23 June low of $1.10 before falling to a 10 January low of $1.07.
More selling strength might push ADA lower, tagging the governing technical formation’s lower boundary at $1.04.
Nevertheless, a surge in buy order would see ADA price aiming higher to the 61.8% FIB retracement zone, matching the 3 August low at $1.26. The alt will meet further resistance near the 21-day Simple Moving Average at $1.30, then 50% retracement zone at $1.33.
Additional hurdles might appear at 50-day Simple Moving Average at $1.35 before ADA price tags the prevailing chart pattern’s upper boundary at $1.39, corresponding with 38.2% FIB retracement zone.
Market players need to note that slicing past the mentioned resistance line might translate to a 40% upswing for ADA, hitting levels of $1.95, the governing technical setup’s bullish target. However, Cardano should conquer several obstacles before achieving the optimistic aim. The token should overcome the 23.6% FIB retracement zone at $1.47, 100-day Simple Moving Average at $1.69, and 200-day Simple Moving Average at $1.81.
ADA might depend on the overall market outlook for its up-and-coming trading sessions. Maintaining the bullish trend will see the alt overcoming its upside obstacles without much challenge.
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