Cardano price hints at a 25% breakout from a consolidation phase

Cardano price is traversing towards the apex of the symmetrical triangle pattern.
A successful breakout could push ADA 25% in either direction.
Transactional data shows a massive supply barrier that could deter an upswing.

Cardano price is nearing the end of a consolidation pattern and suggests a violent breakout soon.

Cardano price could drop lower

Cardano price has formed lower highs since February 27 as a result of aggressive sellers in the market. However, buyers responded by creating higher lows. A symmetrical triangle pattern seems to evolve by joining these swing highs and swing lows using trendlines.

This technical formation has no inherent bias but projects a 25% breakout determined by measuring the distance between the swing high and low formed between February 26 and 27.

A 4-hour candlestick close above $1.13 will signal a 25% upswing, while a decisive close below $1.10 will kickstart a correction of similar magnitude. However, considering the SuperTernd indicator’s recently flashed “sell signal,” the chances of a downward breakout are higher.

In such a scenario, Cardano price could drop to $0.80.

Cardano 4-hour chart

Adding credence to the bearish outlook is IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model, which shows sparse demand barriers present below the current Cardano price. Roughly 23,800 addresses purchased 473 million ADA at an average price of $1.06 and will act as a deterrent to Cardano’s downswing.

Therefore, a breakdown of this barrier will serve as a secondary confirmation to ADA’s pullback.

Cardano IOMAP chart

Moreover, IOMAP cohorts reveal that any momentary upswing will face intense overhead pressure from “Out of the Money” investors at $1.13, where more than 136,0000 addresses previously purchased 5.36 billion ADA.

Therefore, it is imperative that bulls push Cardano price above $1.13 to have any chances of trending higher. If this were to happen, the buyers could propel ADA towards the upside target at $1.44.

Share: Cryptos feed

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram