- ADA is fluctuating in a horizontal channel since early October.
- Network activity points out to a possible bullish breakout.
- IOMAP shows price is floating above key support area.
Since the beginning of October, Cardano is fluctuating in a relatively narrow band and is struggling to make a decisive move in either direction. However, on-chain metrics suggest that the so-called "Ethereum killer" could be on the verge of a bullish breakout. As of writing, ADA was down 3.5% on a daily basis at $0.1057.
ADA's consolidation channel remains intact for now
Following the August-October downtrend, Cardano seems to have gone into a consolidation phase between $0.9 and $0.11. The price tested the upper limit of this channel twice in both October and November. After the latest failed attempt, ADA retreated to the mid-point around $0.1 and started to recover its losses.
ADA/USD 4-hour chart
IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model confirms that strong support area is formed around $0.1, where nearly 5.5 billion ADA were bought by 26,610 addresses. Furthermore, the model also validates the $0.11 area, the channel resistance, as a key hurdle. More than 14,000 addresses acquired a total of 3.1 billion at an average price of $0.1095.
ADA IOMAP
Meanwhile, IntoTheBlock’s “Daily Active Addresses” model reveals that more than 7,000 new addresses are joining the network on a daily basis. The steadily-increasing interest in the cryptocurrency in the past week, as reflected by the +9.46% growth in new addresses, signals a bullish breakout is more likely than a bearish one.
ADA Daily Active Addresses
If the price manages to make a decisive move beyond $0.11 and flips it as a support, the next target of $0.14 could be set by using the height of the current trading channel.
ADA/USD 4-hour chart
ADA has been having a tough time setting its next short-term direction since early October. With the price sitting above a key support level and the network activity showing convincing signs of life, a bullish breakout seems feasible. A daily close below $0.1 could, however, cause buyers to lose interest and drag Cardano back to $0.9 area.
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.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.