Cardano’s price action is contained within two critical price points that will determine where it moves next.
On the upside, slicing through the $1.30 resistance level would be vital for ADA ( $0.00 ) ( $0.00 ) ( $0.00 ) to rise to $2.00.
If the $1.00 support fails to hold, investors may need to prepare for a 60% crash.
Share this article
Cardano remains dormant, but as it edges closer to the apex of a consolidation pattern, the chances for an explosive price move increase.
Cardano Prepares For High Volatility
Most cryptocurrencies are enduring a consolidation period that will likely conclude in a substantial price movement.
For Cardano, the ongoing stagnation phase could lead to a 59.50% breakout in either direction. Such an ambiguous outlook is determined by the formation of a descending triangle on its daily chart.
This technical pattern developed due to the price action that ADA ( $0.00 ) ( $0.00 ) ( $0.00 ) has seen since it reached an all-time high of $2.47 in mid-May. A series of lower highs created the triangle’s hypotenuse while its x-axis formed around $1.00, where most of the swing lows were capped.
Now, Cardano must slice through the overhead resistance at $1.30 or the underlying support at $1.00 to confirm the direction of its trend. Given the importance of these price points, investors should wait for a decisive candlestick above this area to avoid any potential risks.
Breaking through the supply barrier at $1.30 could see the fourth-largest cryptocurrency by market cap head towards $2.00. But if sell orders pile up, leading to a breach of the $1.00 demand wall, Cardano could resume its downtrend to $0.40.
Cardano’s transaction history shows a similar outlook. Based on IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model, the most significant concentration of underwater positions sits at $1.33. Here, roughly 275,000 addresses have previously purchased more than 4.5 million ADA ( $0.00 ) .
These investors will likely try to break even in their long positions as prices rise, making it difficult for Carado to experience a bullish breakout.
On the flip side, the IOMAP model reveals that the most crucial demand barrier below Cardano’s price lies between $1.07 and $1.14. Approximately 102,000 addresses bought 2.15 billion ADA ( $0.00 ) ( $0.00 ) ( $0.00 ) around this price level.
A significant number of addresses would be “Out of the Money” in the event of a downswing that pushes Cardano below this price point. Such market conditions would likely increase the chances for these investors to exit their positions at the market value, pushing prices further down.
The IOMAP shows that the demand zone at $0.36 would likely keep ADA ( $0.00 ) ( $0.00 ) ( $0.00 ) at bay if this were to happen.
Share this article
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.
Cardano Preparing for Web, Mobile Integration
Charles Hoskinson briefed the Cardano community on the blockchain’s plans to add web and mobile integration. Plutus Now Compatible With Web Browser Charles Hoskinson says Cardano will soon support web…
Cardano Expands Testnet Support for Smart Contracts
Cardano has implemented the latest version of its testnet, Alonzo White, bringing smart contracts one step closer to a final release. Cardano Tests Smart Contracts IOHK announced today a successful…
Cardano Close to Launching Smart Contracts: Charles Hoskinson
Charles Hoskinson discusses Cardano’s forthcoming plans. Cardano Founder Discusses Roadmap With a market capitalization of more than $50 billion, Cardano is one of the world’s most valuable decentralized networks. It…