- Cardano price rose just over 3% to trade at $0.386.
- The indicator highlights an uptrend, but bullish pressure is needed to propel the price to the November 2022 high of $0.428.
- Our bullish thesis will be invalidated if the price fails to break out of the immediate resistance and breaks below $0.308.
Cardano’s price has maintained a fairly low profile throughout January as the third-generation cryptocurrency has only gained 57% over the past four weeks. However, expect this to change in the coming days as Cardano prepares for one of its biggest developments.
Cardano price may react to stablecoin launch
At the time of writing, Cardano’s price remained just above the recent resistance at $0.381 as the altcoin reached $0.375. The upcoming launch of the network’s stablecoin Djed is expected to further accelerate this rise, propelling the altcoin to $0.428.
This is possible because the Parabolic Stop and Reverse (SAR) indicator highlights the currently active uptrend. The presence of a blue dot in the indicator below the candlestick is evidence of the same.
This allows Cardano price to sustain above $0.381 and tag a critical resistance at $0.402. Flipping this level to the support floor is very important for ADA. This will allow the altcoin to move higher and tag the November 2022 high of $0.428.
Nevertheless, with the rest of the market cooling down, it is also more likely that a breach will fail at this point. We need to monitor sharp declines in altcoins to limit them. A break below the immediate support level of $0.344 will push the ADA towards $0.325.
ADA/USD 12-hour chart
Below this support level, Cardano price can bounce back from the critical support level of $0.308. However, a daily close below this level would invalidate the bullish thesis and push the ADA to his November 2022 post-crash price of $0.298.
