Cardano Price Analysis: ADA is on the brink of a massive breakout targeting $1.4
|- Cardano could begin another rally if the hurdle at $0.44 is broken.
- The IOMAP reveals little resistance ahead, adding credibility to the ambitious outlook.
- Cardano may freefall to $0.12 if the resistance at $0.44 remains unshaken.
Cardano has been among the best-performing cryptocurrencies since the beginning of the year. The massive upswing came into play after breaking June 2020’s resistance at $0.17. Besides, the most significant price action took place this week, with ADA crossing above $0.4. For now, the least resistance path is upwards, especially if a critical hurdle gets pushed into the rearview.
Cardano prepares for a 48% upswing
ADA is trading at $0.43 after growing over 30% in the last seven days. The consistent push by the bulls has brought the aspiring smart contract token to its ultimate test. If Cardano can rise above the immediate barrier at $0.44, a new rally would be birthed.
Note that this hurdle is significant as it prevented ADA from continuing with the parabolic rise in 2018. Therefore, pushing it into the rearview would leave Cardano with open-air to explore. The near-term target is $0.65 (48% from the current price level), while the most ambitious target lies at the all-time high of $1.4 (230% from the prevailing market value).
ADA/USD weekly chart
The Relative Strength Index appears to validate the uptrend as it rises higher within the overbought region. It is common for the RSI to stay longer in this area during bull markets.
On-chain metrics flip bullish for Cardano
The IOMAP by IntoTheBlock vividly paints a bullish picture for ADA. The model shows that Cardano has a relatively smooth path to hit new yearly highs and perhaps complete the all-time high journey.
However, an area that bulls must channel their concentration to runs from $0.48 and $0.497. Here, 724 addresses had previously purchased roughly 5.8 million ADA. Trading above this zone would be significantly bullish for the token.
Cardano IOMAP chart
On the downside, ADA is trading above robust support zones, hence invalidating any chances of a breakdown soon. Realize that the most vigorous resistance lies between $0.42 and $0.43. Here, roughly 18,500 addresses had previously bought approximately 935 million ADA.
Looking at the other side of the fence
It is worth noting that the bullish outlook will be sabotaged if ADA failed to break above the crucial hurdle at $0.44. A correction would come into play and erase most of the progress made this year. Tentative support areas are the 50 Simple Moving Average at $0.12 and the 100 SMA at $0.089.
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.