Cardano (ADA) price is showing a slowdown in momentum after a rapid rise from a psychological level. This move is facing major resistance that could make or break the uptrend of ADA.
Cardano Price Is At A Milestone
Between February 19 and March 23, Cardano price formed a V-shaped valley known as “Adam”. This movement was followed by a round-bottomed formation known as “Eve”. The Adam and Eve formation is determined by adding the depth of the valley to the measurements and the breaking point at $1. According to this model, a bottom return pattern is defined that will result in a 25% rise.
According to theoretical predictions Cardano prices target is around $1.26. After the rise on March 23, the price gained 23%, but failed to meet the target. The lack of momentum is due to the bearish break that occurred on January 13. This level extends from $1.22 to $1.35 and is blocking the bulls.
Breaking the resistance will allow Adam and Eve to reach their target at $1.26. It will ultimately allow him to make a rally to $1.60. Altogether, this move will represent a 35% rise from the current position and will be at $1.17.
IntoTheBlock’s Global Money In/Exit (GIOM) model will support this move for Cardano price to hit $1.60. This index shows that the bulls are currently grappling with a major hurdle at $1.17.
Clearing this area clears the way for ADA up to $1.56; here, about 583,000 addresses that bought 6.18 billion ADA are “out of money”. A move by Cardano in this area will cause an increase in the selling pressure that market participants are trying to offset. Hence, the upside direction of Cardano price is constrained in this range stretching from $1.43 to $1.70.
With technical data showing a rough road for Cardano, traders need to be prepared for a move either way.
A daily candlestick close to below $1, ADA price would invalidate the ascension thesis and terminate the Adam and Eve establishment. This development will also pave the way for the bears to drop the ADA to $0.85.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.