Cardano price resumes uptrend after rebounding from critical support trendline
|- Despite the recent market sell-off, Cardano price has managed to defend a crucial support trendline.
- The digital asset seems to be poised to resume its previous uptrend after a short correction.
Cardano has been trading in a robust uptrend since December 2020 and despite the recent market sell-off in the past 48 hours, the digital asset has defended a crucial trendline support and aims for a breakout above $0.40.
Cardano price remains bullish despite brief pullback
On the 4-hour chart, a support trendline was formed since January 4 and has been defended on several occasions in the past. Bulls just did it again after Cardano price plummeted from $0.36 to a low of $0.28.
ADA/USD 4-hour chart
Investors quickly bought the dip pushing ADA towards a current level of $0.35 and above the ascending trendline. The In/Out of the Money Around Price (IOMAP) model indicates that the strongest resistance area is located between $0.37 and $0.38 which means a breakout above this point would quickly drive Cardano price above $0.40.
ADA IOMAP
However, it also indicates that a loss of the critical support range between $0.329 and $0.339 could lead Cardano towards the psychological level at $0.30.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.