- After marking the $1.02 to $1.20 demand area, Caldano prices rose about 53% in a week.
- This uptrend has broken out of the daily supply zone, extending from $1.54 to $1.76, halting the rally.
- A 6-hour candlestick close above $1.76 would invalidate the bearish outlook.
Caldano prices have grown exponentially over the past week and are showing signs of slowing down as they approach a huge hurdle. Investors can expect ADA to pull back and recover before starting another rally.
Caldano price looks tired
Caldano prices rose 53% after breaking out of the $1.02 to $1.20 demand area on Jan. 10. This impressive uptrend hit a high of $1.64 in the daily supply area, extending from $1.54 to $1.76.
Interestingly, the area also holds a weekly resistance level of $1.68, making this blockade a strong obstacle. Therefore, the logical outlook for ADA is a retracement. Although the situation may seem pessimistic, it is necessary for the so-called "ethereum killer" to start a new upswing.
Investors can expect Caldano prices to retest weekly support at $1.46 on the way down. This foothold is unlikely to absorb all the selling pressure, so market participants can expect ADA to slip and mark the $1.31 plateau.
Overall, the ADA journey would constitute an 18% drop.
ADA/USDT 6-hour chart
Supporting Caldano's price retracement argument is IntoTheBlock's Global Money In/Out (GIOM) model. This index shows that a large number of underwater investors can prevent an uptrend from stalling on its track.
This barrier extends from $1.71 to $2, where about 379,000 addresses purchased 3.77 billion ADAs at an average price of $1.87. This area overlaps with the resistance level described from a technical point of view, confirming the bearish outlook.
While the situation for Caldano prices looks grim for now, a 6-hour candlestick that closes above the upper limit of the daily supply area at $1.76 will relieve some of the selling pressure and invalidate the bearish thesis.
Market participants should consider this scenario as Daily Active Addresses (DAAs) recently increased from 123,100 on January 6 to 135,080 on January 17. This 9.7% increase indicates that investors are interested in ADAs at current price levels.
There is a DAA
Investors should note that beyond $1.76, Caldano prices will face multiple weekly resistance levels at $1.87, $2.04, and $2.21. Therefore, the uptrend will not be a walk in the park, and it could be choppy.