Cardano Price Forecast: ADA on the cusp of a remarkable 26% rally to $0.132
|- Cardano is at the point of no return, and the bullish pattern is supported both technically and fundamentally.
- According to on-chain metrics, ADA/USD is likely to face subtle resistance between $0.11 and $0.114.
Cardano is on the verge of a significant breakout, following a period of consolidation above the critical support at $0.1. A breakout is in the offing, especially now that ADA has broken above a symmetrical triangle pattern.
Cardano’s bulls swing back into action
The smart contract token is trading at $0.105 at the time of writing. Support at $0.1 played a crucial role in the ongoing breakout above the symmetrical triangle pattern on the 4-hour chart. With the upper trendline resistance in the rearview, the least resistance path appears to be the upside.
Meanwhile, the Relative Strength Index adds credibility to the bullish momentum after creating a near oversold reading, followed by a higher low. On the upside, resistance is anticipated at $0.11 and the recently achieved monthly high of $0.114. Once these two hurdles are behind the token, the journey to $0.123 would be relatively smooth.
ADA/USD 4-hour chart
Cardano is also trading above the 50 Simple Moving Average in the same 4-hour range. Closing the day above this price level would add credence to the bullish outlook. On the downside, support is expected to continue holding the ground at the 200 SMA. Other key levels likely to aid ADA in the mission to achieve new monthly highs are $0.102, the 100 SMA and $0.1.
ADA/USD 4-hour chart
According to the IOMAP model by IntoTheBlock, Cardano faces subtle resistance ahead, with the most notable running from $0.11 to $0.114. Here, roughly 6,000 addresses are holding approximately 1.8 billion ADA. Trading above this zone might elevate ADA to the symmetrical triangle target at $0.132.
On the downside, the model reveals robust support between $0.102 and $0.104. Here, about 28,000 addresses had previously purchased nearly 5.9 billion ADA. It is doubtful that ADA will slice through this buyer congestion zone if a reversal comes into the picture.
Cardano IOMAP model
It is worth noting that the bullish outlook will be invalidated if Cardano fails to close the day above the 50 SMA in the 4-hour timeframe. On the other hand, support envisaged at the 200 SMA and 100 SMA must remain intact for buyers to focus on achieving a new monthly high. The fall may be devastating if Cardano overshoots the primary support at $0.1, hence the possibility of revisiting $0.09.
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