• Cardano price has moved in a 50% trading range since the February high.
  • ADA searching for a second wind as broader crypto market explodes higher.
  • IOMAP data reveals tremendous support down to the middle of the trading range.

Cardano price has shaped a bullish cup-with-handle base that projects a notable rally moving forward. Speculators should consider the recent Polygon (MATIC) rally as proof of the potential for long trading ranges.

Cardano price frustrates the short-sighted

For over a month, between March and April, Polygon (MATIC) transacted in a 55-60% trading range before releasing a powerful 100% rally over five days. MATIC was one of the first cryptocurrencies to achieve an all-time high following the April correction.

Fast forward to today, and there is a similar situation unfolding in ADA. It has been in a 50% trading range for two months with few hints of a pending breakout to the upside. However, from April 14 until today, Cardano price has shaped a cup-with-handle base on the intra-day chart that is beginning to display signs of a breakout. 

It is important to note that the 2018 high at $1.397 has heavily influenced the upper section of the ADA trading range. In fact, the handle closely aligns with the 2018 high.

The trading range measured move is 50%, projecting a rally high of $2.238. The cup-with-handle measured move is 55%, forecasting a rally high of $2.275. Both targets are preceded by the 161.8% Fibonacci extension of the April correction.

Hence, the resistance levels begin with the April 13 high at $1.559 and move on to the 138.2% extension of the April correction at $1.915, the 161.8% extension at $2.175 and the measured move targets of $2.238 and $2.275.

If Cardano price is inspired by the Polygon precedent of a quick 100% gain, aggressive ADA speculators should cast their sights on $2.968.

ADA/USD 12-hour chart

ADA/USD 12-hour chart

Of course, Cardano price could fail once again and revert lower. The first important support is the combination of the 10-week simple moving average at $1.217 with the midline of the trading range at $1.211. Any measurable weakness below those levels will not meet any support until the psychologically important $1.00.

To advance the bullish outlook, the IntoTheBlock In/Out of the Money Around Price (IOMAP) data highlights tremendous support (in the money addresses) from $1.21 to $1.38. The breadth of the support indicates that it will be challenging to overpower Cardano price until at least the midline of the trading range.

ADA IOMAP data

ADA IOMAP data

Due to the closeness to the high, ADA has almost no resistance (out of the money addresses) standing in front of a new all-time high.

Opportunities reveal themselves in different ways, and ADA has offered some clues to suggest that it may be ready for a significant rally.


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

IRS says crypto staking should be taxed in response to lawsuit

IRS says crypto staking should be taxed in response to lawsuit

The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.

More Cryptocurrencies News
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode

Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode

Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.

More Solana News
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses

Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses

Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.

More Ethereum News
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery

Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery

The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election. 

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP