Cardano price rallied by a little more than 3% to trade at $0.386.
While indicators highlight an uptrend, bullish pressure is necessary to push the price toward the November 2022 high of $0.428.
Failure to breach immediate resistance and declined below $0.308 would invalidate the bullish thesis.
Cardano price has maintained a rather low profile throughout the month of January as the third-generation cryptocurrency only registered a 57% rise over the last four weeks. However, this is expected to change over the next few days as Cardano prepares for one of its biggest developments.
Cardano price, at the time of writing, was lingering right above the immediate resistance of $0.381 as the value of altcoin reached $0.375. The upcoming launch of the network’s stablecoin Djed is expected to further this rise and push the altcoin to tag $0.428.
This is possible as the Parabolic Stop and Reverse (SAR) indicator is highlighting an active uptrend presently. The presence of the blue dots of the indicator below the candlesticks is evidence of the same. Even then, buyers need to maintain their stance to ensure the altcoin doesn’t lose its bullish momentum.
This would allow Cardano price to keep above $0.381 and tag the critical resistance at $0.402. Flipping this level into a support floor is crucial for ADA as that would enable the altcoin to rally further and tag the November 2022 highs of $0.428.
Nevertheless, the possibilities of a failed breach are also high at the moment as the rest of the market is in a cooldown. In the case where Cardano price fails to flip the resistance into support, traders must watch the altcoin for a sudden decline to minimize their losses. A fall below the immediate support level at $0.344 would push ADA toward $0.325.
ADA/USD 12-hour chart
Falling through this support level would give Cardano price another shot at bouncing off the critical support level at $0.308. However, a daily close below this level would invalidate the bullish thesis, bringing ADA to $0.298, the price it was at post November 2022 crash.