By Franklin Smith
- ADA price undergoes a retracement that might form a base for a 38% upswing toward $1.75.
- Cardano should flip the resistance barrier at $1.60 as support to attain its target at $1.75.
- The latest average transaction size increase and transactional data support ETH-Killer’s bullish thesis.
Cardano’s current price formed liquidity pools that might benefit ADA in the upcoming sessions. For now, the altcoin prints a bullish picture. Moreover, on-chain metrics provide a tailwind for the optimistic claim.
ADA Price to Gather Buy-Stop Liquidity
Cardano’s price formed a double-top near $1.75 on 2 December and dropped 32%, hitting $1.13. The following days had ADA creating a double bottom near $1.13 before surging 18%. Nevertheless, the latest retracement might set a stage for sustained bullishness.
A bounce from the support area of $1.26 for a new swing high past $1.47 will affirm upward price movements. In such a scenario, the ADA price will face the resistance area at $1.60. Flipping this hurdle into a support barrier will prove buyers’ strength. The move will clear the road for gathering buy-stop liquidity beyond the obstacle at $1.75. That upswing would translate to a 38% surge.
Also, Cardano saw its average transaction size climbing to $83,704 from $23,877, supporting the bullish narrative. This 250% surge in transfer size shows investors’ interest in ADA at its current price levels and actively pours money into the alt.
Furthermore, the GIOM model contributes to ADA’s bullishness. For now, the altcoin will encounter a few hurdles on its way up. Two significant underwater investors cluster stand at $1.42 and $1.60. Here, nearly 381K and 441K addresses bought about 4.32B and 5.25B Cardano tokens, respectively.
With that, amplified buying momentum to propel ADA into these clusters might encounter selling momentum for investors attempting to break even. Therefore, Cardano bulls have to overcome these price zones to attain the goal, touching $1.75.
While everything might appear promising for ADA price, Cardano has a chance to correct beneath $1.19 to gather liquidity. Such a situation will provide investors with a buying opportunity. However, a lower low beneath $1.12 will cancel the bullish case. Such developments can see Cardano dropping to retest the support floor at $1.02.