Cardano’s price has reached an inflection point, and ADA is expected to retest $1.45.
Between January 10 and January 13, the price of Cardano increased by 26% to $1.35.
As ADA retests the $1.35 level for the fourth time, a breakthrough might occur, initiating another leg up.
A violation of the weekly support level at $1.20 would be a blow to the bullish case.
Cardano’s price has seen a significant increase in purchasing pressure over the last five days, with hints that this trend may continue. To affirm the continuation of the positive outlook, ADA must overcome one critical obstacle.
Cardano’s price is at a tipping point
Cardano’s price increased by around 26% from January 10 and January 13, establishing a swing high of $1.35. Soon after, ADA retraced 10% and reversed the trend, culminating in a complete reversal and retest of the $1.35 barrier.
ADA marked this obstacle five times between January 4 and January 16. As a result, there is a good likelihood that this level has weakened and that the most recent retest will break through. Assuming ADA bulls go through, the cryptocurrency would reach the $1.38 resistance level and collect the buy-stop liquidity that sits above it.
In a bullish scenario, ADA will make a push for the weekly resistance barrier, which is located immediately below the four-hour supply zone and extends from $1.46 to $1.52. While ADA may not retest $1.52, there is a significant probability the Cardano price will breach the $1.46 barrier, increasing the overall gain to 9 percent from the present position.
This move would imply that the five-month slump is about to reverse and that investors may anticipate ADA to resume its positive trend.
If, on the other hand, the Cardano price fails to break past the $1.35 barrier, it will imply that the barrier is difficult to overcome. This rejection may result in a downturn that retests the weekly support level of $1.20. Buyers can rally here for a rally, but a four-hour candlestick finish below it will dampen the mood and potentially invalidate the bullish argument.
In such a circumstance, ADA might bounce off the daily demand zone, which stretches from $1.20 to $1.02.