• Cardano price failed to galvanize investors’ enthusiasm as ADA continues to trend lower.
  • The Ethereum-killer is locked within a consolidation pattern and a lower low could be expected if the bulls fail to retaliate.
  • A recovery for Cardano price could be tough for the bulls, as an indicator suggests that many ADA investors are now underwater. 

Cardano price action has been uneventful, following a 19% drop from the swing high on November 9. It appears that ADA is now trapped within a consolidation pattern with little incentive to reverse the period of underperformance. Further selling pressure could push the Ethereum-killer down toward $1.75.

Cardano price to test lower levels of support 

Cardano price is sealed within a descending parallel channel pattern on the daily chart, confusing forecasts as ADA continues to consolidate. The token is currently discovering lower levels of support, with the first line of defense at $1.90, the September 21 low.

Additional selling pressure could see Cardano price drop toward the 200-day Simple Moving Average (SMA) at $1.87. If ADA loses this foothold and continues to lose strength, bears could be incentivized to push the token lower toward the October 27 low at $1.80.

Cardano price could descend even lower to tag the lower boundary of the parallel channel at $1.75 if the bulls fail to fight back.

ADAUSDT

ADA/USDT daily chart

IntotheBlock’s In/Out of Money Around Price (IOMAP) model based on volume suggests that even if Cardano price is able to discover reliable support in the near term, reversing the period of underperformance may be challenging. The IOMAP indicates that ADA investors that are underwater are substantially higher than those that are in the money.

According to the IOMAP, the largest cluster of support is at $1.78, where 53,360 addresses purchased 850 million ADA.

However, if ADA bulls decide to reverse the period of sluggish performance, Cardano price would face immediate resistance at the middle boundary of the prevailing chart pattern at $2.02, coinciding with the 21-day SMA. An additional obstacle would emerge at $2.05, at the October 28 high.

The IOMAP suggests that the largest cluster of token holders with a total of 418,370 addresses purchased 5.59 billion ADA at an average price of $2.06, which acts as the stiffest hurdle for Cardano price in the near term. 

ADA IOMAP

ADA IOMAP

If Cardano price manages to slice above the aforementioned resistance, ADA would face further headwind at the 50-day SMA at $2.11, then at $2.15, the November 11 high. According to the IOMAP, until the Ethereum-killer manages to break above $2.18, the token may continue to face tough challenges ahead, with little room for bigger bullish aspirations in the near future. 


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

Polygon joins forces with WSPN to expand stablecoin adoption

Polygon joins forces with WSPN to expand stablecoin adoption

WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

Coinbase envisages listing of more meme coins amid regulatory optimism

Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

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.

More Shiba Inu News
Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week. 

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