Cardano ADA Needs to Break $1.3 Resistance to Reach $2: Here’s Why

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Cardano is strengthening its position within a crucial price zone. The latest market activity indicates that buyers are determined to surpass the $1.3 resistance barrier.

However, the movements at this juncture are pivotal in shaping ADA’s next market trend.

Technical Analysis

By Shayan

The Daily Chart

Recently, there’s been strong buying activity around the $0.87 support for Cardano, leading to a notable price surge. This bullish trend is propelling the asset towards the $1.3 region, which is crucial because it aligns with the upper limit of the descending wedge.

Overcoming the $1.3 barrier poses a substantial hurdle given its psychological and technical significance. Crossing this threshold might suggest the initiation of an intermediate upward trend, aiming for the $2 resistance area. Conversely, if we fail to surpass it, there could be extended consolidation or even a shift towards a downward trend (bearish reversal).

The 4-Hour Chart

On the 4-hour chart, Cardano (ADA) has just burst through a downward wedge formation, triggering an uptrend starting from the wedge’s broken support line at $0.87. The price is now approaching the $1.3 resistance level, which coincides with a significant past turning point, making it even more crucial.

At the moment, Cardano is holding steady around $1.3, but there are indications that sellers might be gaining traction. An unfavorable pattern observed between the price and the Relative Strength Index (RSI) indicates a buildup of selling power.

To determine the next major move, ADA needs a decisive breakout above this consolidation range. A bullish breakout could trigger a sustained rally, targeting higher levels like $2, while a rejection at $1.3 might result in further declines, with potential support near $0.87.

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2025-01-18 21:48