• Cardano’s price encounters two critical obstacles at $1.20 and $1.24, reducing upside potential.
  • Market players might see ADA losing around 15% to revisit the psychological barrier at $1.
  • A 4hr candle close beyond $1.24 will cancel the near-term bearish case.

Cardano price overpowered a consolidation range but found it challenging to move higher. The resistance confluence in Cardano’s upside paths means challenges to ADA bulls. The alt’s latest upswings came as the broad market printed positive movements.

Cardano Surges but the Worst May Emerge

Cardano had its price inside the range of $1.12 and $1 for about fourteen days, suggesting a consolidation attitude. 5 February session saw ADA breaching sideways actions before flipping $1.12 into support following a swing peak beyond this mark.

The alternative coin encounters two crucial obstacles as it hovers above the $1.12. The obstacles are a weekly resistance zone around $1.20 and a 50-day SMA at $1.24. That reduces ADA’s chances of surging to higher levels.

Therefore, market players may expect ADA price to meet rejection from either of the obstacles and correct lower. Failure to break the 50-day Simple Moving Average at $1.24 might translate to a 15% downward move towards the daily footing at $1. This support has been critical during ADA run-up to $3 during mid-2021 sessions. Therefore, the foothold can prevent further downswings from Cardano.

The IntoTheBlock’s GIOM model backs the downward narrative for ADA price. The on-chain metric shows ADA does not have an immediate support barrier, the stable footing appearing at $1.03. Such a case accentuated the near-term bearish scenario. Therefore, enthusiasts may expect Cardano to secure a firm foothold near this barrier, where about 448,830 addresses that bought 7.78 billion tokens remain out of money.

Large transactions plummeting to 4,900 from 5,100 also shows ADA’s bullish is unlikely. The 3.9% drop indicates large investors are not attracted to Cardano at the current price.

For now, Cardano appears prepared for a swift drop towards the critical psychological level of $1. However, bulls can side-step the bearish picture with a 4hr candle close beyond $1.24. With that, ADA might register a 17% ascent to $1.45, the level with weekly resistance and 100-day Simple Moving Average.