Cardano Price Prediction: ADA sits on stable support preparing for a 60% breakout
- Cardano price seems to be finding a foothold above the $0.87 support level before entering a new uptrend.
- A confluence of bullish signals notes that an upswing is inevitable if ADA closes above the $0.92 resistance level.
- While a decisive 4-hour candlestick close above this hurdle could trigger a 60% upswing, failure to do so might drag Cardano down by 40% or more.
Cardano price was able to recover after a brutal 21% crash. Now, ADA is trading between two crucial barriers setting up for a volatile move shortly.
Cardano price poised to breakout
Cardano price found support on the 50 four-hour moving average after taking a nosedive to the $0.68 support level on February 15. The so-called “Ethereum killer” continues trading above this lagging indicator, bouncing off it multiple times.
Such behavior demonstrates the strength of the 50 four-hour moving average to keep falling prices at bay, which is a very positive sign.
ADA/USDT 4-hour chart
The Tom DeMark (TD) Sequential indicator adds credence to the optimistic outlook. This technical index flashed a buy signal on ADA’s 4-hour chart, forecasting further upward momentum.
Likewise, the Parabolic Stop and Reverse (SAR) moved underneath Cardano price, anticipating the beginning of a new uptrend. The flip-over coincides with the TD setup’s buy signal and strengthens the bullish outlook presented by the SuperTrend indicator.
ADA/USDT 4-hour chart
Based on IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model, Cardano price must slice through $0.92 to advance further. Here, nearly 28,000 addresses previously purchased about 1.32 billion ADA.
These investors are "Out of the Money" and may be inclined to sell their holdings at break-even, slowing down the uptrend seen recently. But if Cardano price manages to break through this hurdle, it will likely march towards $1.20.
Cardano IOMAP chart
On the flip side, the IOMAP cohorts show that Cardano price sits on top of stable support. More than 48,500 addresses are holding over 3.30 billion ADA between $0.86 and $0.88.
As long as Cardano price holds above this massive demand wall, the bullish outlook will remain intact. Failing to do so could prove fatal for the ADA as the next demand barrier is at $0.67.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
