• Cardano price shows signs of a reversal after a 30% correction.
  • The Tom DeMark Sequential indicator’s buy signal on the 4-hour and the 12-hour chart hints at a continuation of the bull rally.
  • Transaction data shows stiff resistance at $1.28 that could deter ADA’s upswing.

Cardano price showed signs of a recovery as bulls managed to keep ADA above a critical support barrier. Now, a reversal in momentum could put the so-called “Ethereum killer” back on track to $2.

Cardano price hints at a u-turn

Cardano price dropped nearly 30% after hitting an all-time high of $1.48 on February 27. Although ADA sliced below the 50 four-hour MA, bulls have kept the altcoin above the 100 four-hour MA  shows their strength.

The lower Bollinger band, which coincides with the 100 four-hour MA, provided an extra layer of support to the declining prices. If this barrier continues to hold, a volatile reversal move will be in play.

Adding credence to this bullish thesis is the TD Sequential indicator’s buy signal presented in the form of a green nine candlestick on both the 4-hour and 12-hour charts. This setup forecasts a one-to-four candlestick upswing, suggesting that Cardano price is heading to greener pastures.

ADA/USDT 4-hour and 12-hour chart

ADA/USDT 4-hour and 12-hour chart

While the technicals indicate a bullish outlook, investors need to pay close attention to the $1.26 resistance barrier. 

IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model reveals that here roughly 32,800 addresses are holding 1.83 billion ADA. These holders are currently “Out of the Money,” based on this on-chain metric. 

Hence, they might be inclined to sell their token to break even. Only a decisive 4-hour candlestick close above $1.26 will kickstart Cardano price bull rally to $2.

Cardano IOMAP chart

Cardano IOMAP chart

On the other hand, the IOMAP cohorts also show that a 4-hour candlestick close below $1.07 will put 165,000 addresses underwater. Since these investors hold 3.52 billion ADA, such a move could be fatal for Cardano price. 

Slicing through this critical support barrier could trigger a 16% sell-off to the next interest area at $0.89.

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

Shiba Inu price looks south towards $0.0000060 as technicals favor SHIB bears

Amidst an underlying downbeat mood across the crypto market, Shiba Inu extends the bearish momentum into the third straight day on Sunday. The tide is seen turning in favor of SHIB bears once again, as well depicted by Shiba Inu’s daily technical graph, with the market licking its wounds from the China-led blow. Upside remains elusive with 61.8% Fib offering strong resistance.

More Shiba Inu news

Cardano price eyes a drop towards $1.85

Cardano price is once again on the slippery slope this Sunday, kicking off a new week on the wrong footing, as ADA bulls lack follow-through recovery momentum. ADA sellers target 100-DMA at $1.85 on a firm break below $2.

More Cardano News

Ethereum bears contemplate a drop to $2450

ETH price is building up downside pressure while clinging to the 200-SMA support. RSI remains flat below the midline, keeping the sellers cheerful. A drop towards $2450 remains in the offing if the 200-SMA caves in.

More Ethereum News

Polkadot price at make-or-break point as DOT awaits a range breakout

Polkadot price spots a potential symmetric triangle pattern on the 1D chart. RSI stands neutral at 50.00, suggesting a lack of clear directional bias. 21-DMA offers immediate resistance, 50-DMA guards the downside.

More Polkadot 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