|

Cardano price resumes uptrend after rebounding from critical support trendline

  • Despite the recent market sell-off, Cardano price has managed to defend a crucial support trendline.
  • The digital asset seems to be poised to resume its previous uptrend after a short correction.

Cardano has been trading in a robust uptrend since December 2020 and despite the recent market sell-off in the past 48 hours, the digital asset has defended a crucial trendline support and aims for a breakout above $0.40.

Cardano price remains bullish despite brief pullback

On the 4-hour chart, a support trendline was formed since January 4 and has been defended on several occasions in the past. Bulls just did it again after Cardano price plummeted from $0.36 to a low of $0.28.

ada price

ADA/USD 4-hour chart

Investors quickly bought the dip pushing ADA towards a current level of $0.35 and above the ascending trendline. The In/Out of the Money Around Price (IOMAP) model indicates that the strongest resistance area is located between $0.37 and $0.38 which means a breakout above this point would quickly drive Cardano price above $0.40. 

ada price

ADA IOMAP 

However, it also indicates that a loss of the critical support range between $0.329 and $0.339 could lead Cardano towards the psychological level at $0.30.

Author

Lorenzo Stroe

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.

More from Lorenzo Stroe
Share:

Editor's Picks

BNB Price Forecast: Derivatives back bullish upside continuation

BNB, formerly known as Binance Coin, edges lower, trading around $790 on Monday after posting three consecutive weekly gains. Rising Open Interest and positive funding rates suggest that bullish positioning is strengthening in the derivatives market.

Solana Price Forecast: SOL rally remains capped as ETF inflows ease

Solana price edges lower on Monday, hovering around $120 after four consecutive days of trading in the green. The institutional support for SOL eased last week, with total inflows of less than $2.50 million, from over $188 million in the previous week. The technical outlook for SOL remains mildly bullish, forming a triangle pattern on the four-hour chart.

Dogecoin Price Forecast: ETF inflows and technicals fuel recovery

Dogecoin extends its gains, trading above $0.096 after finding support around the key support zone last week. Continued inflows into spot DOGE ETFs, alongside strengthening derivatives metrics, indicate improving market sentiment. Meanwhile, the constructive technical outlook suggests the meme coin could extend its gains if the key level holds.

Cardano Price Forecast: ADA rally strengthens bullish breakout setup
Cardano (ADA) price extends a steady recovery on Monday, trading above $0.2600 after a 6% rise the previous day. The altcoin sees strong retail demand, with ADA futures Open Interest up 15% in 24 hours and the funding rate remaining positive. Cardano must confirm the breakout of a key resistance level near $0.2632, which could further extend the rally toward $0.3000.
Bitcoin: Is BTC setting up for an Uptober rally?
Bitcoin (BTC) extends its gains, trading near $86,000 at the time of writing on Friday after closing September 6.33% up, reversing its seasonal weakness. Historical data suggest October could be a strong month for BTC, especially after a positive September.