Cardano Poised for Volatility as Bulls Grapple for Control

Key Takeaways

• Cardano has reached an inflection point as volatility prepares to strike back.
• As long as the $1.10 support holds, the odds remain high for an upswing to nearly $2.00.
• If ADA fails to hold above this price hurdle, then a correction to $0.88 may materialize. 

Cardano has endured a five-day stagnation period without providing a clear sign for where its price is heading next. Now that ADA sits at a crucial support level, a spike in demand is all that it needs to march towards new all-time highs.

Cardano Primed for Higher Highs

Cardano’s price action has been contained within an ascending parallel channel over the past month.

Each time ADA has risen to this technical formation’s upper boundary since early February, it gets rejected and retraces to the lower edge. From this point, it tends to rebound, consistent with the characteristics of a channel.

Following the recent retest of the channel’s lower trendline, Cardano may be poised for a bullish impulse towards the middle or upper trendline as it has done in the past few weeks.

These interest areas sit at $1.50 and $1.90, respectively.

As long as the underlying support at $1.10 continues to hold, the odds for a rebound to new all-time highs will remain intact.

Strong Support With No Resistance

IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model reveals that it will take a significant number of sell orders for Cardano to slice through the $1.10 support. Based on this on-chain metric, nearly 140,000 addresses had previously purchased roughly 5 billion ADA around this price level.

Such a critical demand barrier will likely absorb any downward pressure. Holders within this range might do anything to prevent seeing their investments go “Out of the Money.” They may even buy more tokens, subsequently countering the selling pressure.

Given the significance of the $1.10 support level, only a daily candlestick close below this level would invalidate the bullish outlook. Slicing through this price hurdle will see Cardano dive towards the next important interest area at $0.88.

Here, the IOMAP cohorts show that 136,000 addresses hold 2.80 billion ADA.

Disclosure: At the time of writing, this author held Bitcoin and Ethereum.

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Source: Read Full Article