Lorenzo Stroe
Independent Analyst
- Cardano price is contained inside an ascending triangle pattern on the 4-hour chart, ready to burst.
- The breakout or breakdown will most likely drive ADA by 30% in the long-term.
Cardano has been trading relatively sideways for the past four days consolidating from its 2020-high at $0.183. The digital asset seems to be ready for a massive price move as bears and bulls continue fighting.
Cardano is on the verge of a huge move, but in which direction?
It seems that Cardano has formed an ascending triangle pattern on the 4-hour chart which is extremely close to a breakout or breakdown. So far, the bulls have defended the 50-SMA as support which means they are strong.
ADA/USD 4-hour chart
The In/Out of the Money Around Price chart (IOMAP) only shows one significant resistance area between $0.164 and $0.168, but the upper trendline of the pattern is at $0.173. This seems to indicate that climbing above $0.168 can quickly drive Cardano price to the upper boundary of the triangle and break out easily, targeting $0.223.
ADA IOMAP chart
On the other hand, the same chart also shows very little support on the way down and the current Cardano price at $0.163 is close to the lower boundary of the pattern. A breakdown below this point can push ADA price towards $0.115 in the long-term.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Why crypto may see a recovery right before or shortly after Bitcoin halving
Cryptocurrency market is bleeding, with Bitcoin price leading altcoins south in a broader market crash. The elevated risk levels have bulls sitting on their hands, but analysts from Santiment say this bleed may only be cauterized right before or shortly after the halving.
Manta Network price braces for volatility as $44 million worth of MANTA is due to flood markets
Manta Network (MANTA) price was not spared from the broader market crash instigated by a weakness in the Bitcoin (BTC) market. While analysts call a bottoming out in the BTC price, the Web3 modular ecosystem token could suffer further impact.
Bitcoin price uptrend to continue post-halving, Bernstein report says as traders remain in disarray
Bitcoin is dropping amid elevated risk levels in the market. It comes as traders count hours to the much-anticipated halving event. Amid the market lull, experts say we may not see a rally until after the halving.
OMNI post nearly 50% loss after airdrop and exchange listing
Omni network (OMNI) lost nearly 50% of its value on Wednesday after investors dumped the token following its listing on top crypto exchanges. A potential reason for the crash may be due to the wider crypto market slump.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.