Cardano (ADA) Forms Bullish Reversal Setup, Eyeing $1.96
ADA had its price sliding lower after breaking past a crucial resistance level.The prevailing chart setup projects a 30% surge to $1.96.However, a plunge beneath $1.39 might trouble ADA bulls.
Cardano had its price slicing past a critical resistance zone, authorizing a bullish pattern. Nevertheless, momentum faded as the alternative coin saw a slight retrace, testing a crucial defense line before ADA eyes higher aspirations.
ADA Price Encounters Stiff Obstacle
Cardano’s daily price chart shows the token formed a declining wedge pattern, forecasting a bullish outlook for the ETH killer. Meanwhile, ADA authorized the prevailing chart setup that targets a 40% surge as the crypto rose past the topside boundary.
Though ADA price registered a massive break out from a governing technical setup, the alt has seen a slight correction, securing a dependable support floor before surging higher.
Cardano had its stiff obstacle at a 78.6% FIB retracement mark at $1.51. IntoTheBlock’s IOMAP model appears to pad this resistance, according to volume. The metric shows a massive 208,300 addresses bought 3.38 billion Cardano tokens at a $1.51 average price.
The altcoin might encounter an additional hurdle at 100-day SMA around $1.65, then 3 December peak of $1.72, matching the Momentum Reversal Indicator’s resistance line. Moreover, another obstacle will emerge at the 200-day Simple Moving Average at $1.82.
However, increased selling pressure will see ADA exploring the closest support zone at 61.8% FIB retracement zone at $1.42. Further declines might have the Ethereum killer falling towards the primary technical setup’s topside boundary at $1.39.
Market players need to beware that Cardano plunging under the mentioned defense line might void the bullish chart setup. The alt might continue dipping towards the 50% retracement mark near $1.35, the level intersecting with the 50-day Simple Moving Average.
Amplified sell orders might see ADA price dropping to tag $1.28, near 38.2% FIB retracement level around the 21-day Simple Moving Average.
For now, ADA bulls seem ready for an upward journey, contemplating a 30% surge to $1.96. The optimistic narrative emerged after the coin printed a bullish reversal setup with recent falls. Stay tuned for what upcoming trading sessions will have for the altcoin.
