Lorenzo Stroe
Independent Analyst
- 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.
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
Three altcoins that have kickstarted Q4 rally: LINK, RDNT, FLOKI
Chainlink price has been on a tear for the last two weeks and has the potential for more upside. Radiant Capital price has breached a falling wedge and shows promise of further ascent.
Week ahead: Fed speech and NFP likely to dictate crypto market moves this week
With the start of 2023’s fourth quarter, things are finally getting interesting in crypto. While the next 12 weeks are extremely important, let’s start by focusing on what to expect this week.
DOT confirms trend reversal, eyes retest of $5 after reclaiming key hurdle
Polkadot price trades inside a tight range above a critical support level of $3.98. The daily RSI produced a higher high, signaling a surge in bullish momentum and a potential breakout scenario.
FLOKI sets stage for 30% rally
Floki Inu (FLOKI) price has triggered a quick but explosive uptrend in the last 24 hours. The uptrend has pushed the meme coin above a key hurdle and could assist FLOKI bulls in reversing the downtrend.
Bitcoin: BTC recovery rally could be bull trap in disguise, here’s why
Bitcoin (BTC) price remains unfazed even after the multiple spot BTC ETF delays from the US Securities & Exchange Commission (SEC). But investors need to be careful with the ongoing BTC rally as it could be a trap for early bulls.