- Cardano price remains contained inside a parallel channel on the 4-hour chart.
- Several indicators suggest the digital asset is poised for a massive breakout towards $0.22.
Cardano has been trading inside a parallel channel for over a month and it’s getting closer to a breakout. Bulls have managed to secure several critical support levels and are now ready to push ADA above a key resistance point.
Cardano price needs to crack $0.17 to see a massive breakout
On the 4-hour chart, Cardano has established a parallel channel and bulls have pushed the digital asset above the 50-SMA, 100-SMA, and 200-SMA, turning all three into support levels.
ADA/USD 4-hour chart
At this point, it seems that the bulls have the upper hand, but still need to crack the key resistance level at $0.173 before a breakout. If Cardano price can climb above this point, it would most likely get driven towards $0.22.
ADA IOMAP chart
Additionally, the In/Out of the Money Around Price (IOMAP) chart shows practically no resistance above. The most critical area seems to be located between $0.166 and $0.17 which coincides with the upper trendline of the parallel channel, giving credence to the bullish outlook.
Bears would need to drive Cardano price below the three moving averages, to have any chance of pushing ADA towards the lower trendline at $0.13. A breakdown below this crucial support level would take the digital asset down to $0.1.
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.