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

Akash Girimath Akash Girimath

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 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.
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.
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.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Bitcoin price and performance of Asian stock markets are correlated, argued IMF officials. Several countries in Asia have adopted Bitcoin, Ethereum and cryptocurrencies, despite regulatory concerns. 
XRP price shows no interest to move higher or lower as it consolidates around a stable support level. Devoid of any directional bias, Ripple investors can attempt to open long positions after the liquidity present to the downside is collected. coin (CRO) price action is seeing bulls not giving away their positions and trying to battle against the bearish price action that is holding on to cryptocurrencies. 
Cardano price reveals an interesting setup that has been repeated four times in the last two months or so. The most recent occurrence was on August 23, which forecasts a quick but explosive move for ADA.
A period of controlled selling has kick-started and is currently approaching short-term support levels. A minor relief rally might occur – before the next leg down to inefficiencies and liquidity. The current down move has broken significant levels that could trigger a massive sell-off in the future. 
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.