Cardano Poised to Retrace Before 30% Breakout

Key Takeaways

  • Cardano has gone through a lengthy consolidation phase that began in late November.
  • While ADA remains stationary, momentum is building for a 30% increase.
  • But first, it looks like this altcoin could go back to $ 0.153.

Share this article

Cardano has traded on the side for the past month while Bitcoin has stolen the crypto magnifier after rising to a new all-time high of more than $ 23,000. While investors expect ADA to hold the rest of the market, technical things point to a price before a massive cut.

Cardano Plays Still Up

The so-called “Ethereum killer” has endured a month-long stagnation that began in late November. Since then, ADA has made a series of higher lows, while the $ 0.175 resistance barrier has prevented the ticket from achieving its upside potential.

The implementation of such prices appears to have resulted in the formation of an ascending triangle on the 4-hour chart. Horizontal trend developed along with the swing highs, while an increasing trend was created along with the swing lows.

A large increase in demand for Cardano around current price levels could be significant enough to allow it to slip through the overhead resistance. If ADA moves past the $ 0.175 barrier, FOMO is likely to kick in, pushing prices up more than 30%.

The $ 0.232 level may be a potential target when considering the distance between the two highest points of the ascending triangle.

Cardano US dollar price chart
ADA / USD on TradingView

Given the overwhelming sentiment among investors, it is highly likely that the cryptocurrency market will be guaranteed a steep correction before the uptrend resumes.

Short Life Correction Before Higher Highlights

Trading veteran Peter Brandt has publicly stated that he has left 20% of his Bitcoin position because bull rallies are often accompanied by “short-term shots.”

If this were to happen, the ninth largest cryptocurrency could reopen the hypotenuse of the ascending triangle at $ 0.153 before the breach occurs.

This short-term bearish scenario holds while looking at Cardano’s transaction history.

IntoTheBlock’s “In / Out of the Money Around Price” (IOMAP) model reveals that this altcoin is sitting under a significant supply barrier. Previously, more than 8,800 addresses had purchased over 1.4 billion ADA approximately $ 0.168.

This resistance wall is likely to continue to absorb and absorb some of the recent purchasing pressure. As holders who have been waiting to balance the budget on their jobs, they can slow the uptrend and trigger a correction.

Cardano In / Out of the Money for the Price by IntoTheBlock
In / Out of Money from About the Price by IntoTheBlock

On its way down, the IOMAP factions show that Cardano could find stable support at $ 0.153 around the hypotenuse of the ascending triangle. Here, about 36,500 addresses bought nearly 3.6 billion ADA.

Such a vital area of ​​interest could keep falling prices in the bay and serve as a rebound zone.

Share this article

Source