• Cardano price has successfully bounced off the hypotenuse of an ascending triangle pattern.
  • Although bullish, it needs to slice through two levels to have any chance of surging toward $2.
  • Unlike technicals, on-chain transactional data shows a free path ahead for ADA.

Cardano price is fast approaching one of two critical supply barriers that could deter the upswing move.

Cardano price eyes higher high

Cardano price has created another higher low as it bounced off the ascending triangle’s hypotenuse, coinciding with the 50 and 100 Simple Moving Averages (SMA) on the twelve-hour chart.

This setup is formed when the swing lows and the series of highs are connected using trend lines. The technical formation forecasts a 46% upswing, determined by adding the distance between the first pivot high and low to the breakout point at $1.48.

ADA has surged nearly 11% at the time of writing as it trades under the Momentum Reversal Indicator’s (MRI) State Trend Resistance at $1.34. Interestingly, this level coincides with the SuperTrend indicator’s sell signal flashed on March 22. Thus, a swift breach of this level will not only flip a resistance into support but also trigger the SuperTrend indicator’s buy signal.

If the bullish momentum manages to slice through the $1.48, ADA will have begun its 46% upswing to $2.16. Although bullish, in this trajectory, the so-called “Ethereum-killer” will face a test of its bullishness at $1.82.

Clearing this level will further propel the Cardano price toward its target of $2.16.

As mentioned in a previous article, the Bollinger Bands have expanded, denoting a surge in volatility. However, a further spike in volatility caused due to the bullish momentum will easily slice through the above levels.

ADA/USDT twelve-hour charts

ADA/USDT twelve-hour charts

Based on IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model, the recent surge leaves few supply barriers ahead. 

Roughly 15,000 addresses that purchased nearly 200 million ADA at an average price of $1.32 are still “Out of the Money,”  suggesting that a breach of this level is necessary. Likewise, 16,500 addresses that hold about 463 million tokens acquired at $1.35 are underwater.

Hence, the buyers need to flip these levels to cruise to higher levels.

Cardano IOMAP chart

Cardano IOMAP chart

Regardless, it would be bearish if the bulls fail to conquer the immediate supply barrier at $1.34. A reversal here that pushes through the hypotenuse of the ascending triangle pattern at $1.20 might likely stop the bullish outlook.

However, the upswing will be invalidated if the Cardano price dips below $1.12 for an extended period.    If the bearish momentum persists, an 18% drop to $0.92 seems plausible.

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.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Cryptocurrency markets make comeback as BTC bulls resurface

Bitcoin price taking a second attempt at an upswing to retest $42,451. Ethereum price has flipped a crucial resistance level at $2,640 into a support barrier. Ripple price lacks momentum and is close to testing a crucial demand zone extending from $0.623 to $0.671.

More Bitcoin News

Ripple to keep headquarters in US despite lack of clarity around SEC crypto regulations

Although Ripple Labs continues to battle against the US Securities & Exchange Commission (SEC) in the $1.3 billion lawsuit, the blockchain firm has reiterated its decision to keep its headquarters in San Francisco.

More Ripple news

SafeMoon Price Prediction: SAFEMOON has one last chance for 65% rally

SafeMoon price experienced a massive sell-off that has pushed it to slice through major support levels, jeopardizing its ability to move higher. Despite this, SAFEMOON currently sits above the last line of defense. A bounce from this area could result in a comeback.

More SafeMoon News

Cardano price capped by stiff resistance as skepticism grows around smart contract launch

A brief technical and on-chain analysis on Cardano price. Here, FXStreet's analysts evaluate where ADA could be heading next as it seems bound to advance further.

More Cardano News

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP