Cardano Price Prediction: ADA must stay above this trendline to avoid a collapse
- Cardano price is close to a critical support trendline which has been holding since February.
- A key indicator is on the verge of presenting a buy signal.
- ADA faces a significant barrier above $1.2.
Cardano had a relatively small sell-off in the past few days compared to the market but must remain above a critical support level to avoid a more significant drop.
Cardano price must stay above key level to avoid collapsing
On the 4-hour chart, there is a critical support trendline formed at about $1.1, which coincides with the 50-SMA. Cardano price has bounced several times in the past month and a half from both indicators.
A breakdown below the key support level of $1.1 would send Cardano towards $0.9 at the 200-SMA. The In/Out of the Money Around Price (IOMAP) chart shows practically the same outlook with the most significant support area between $1.08 and $1.12.
However, since the $1.1 support trendline is robust, a rebound from this point will quickly push Cardano price towards the next significant resistance level located between $1.26 and $1.29 according to the IOMAP model.
Author
Lorenzo Stroe
Independent Analyst
Lorenzo is an experienced Technical Analyst and Content Writer who has been working in the cryptocurrency industry since 2012. He also has a passion for trading.
