Cardano price must hold critical support level to avoid 15% drop
- Cardano price trades right above a key support level on the 4-hour chart.
- Losing this critical point would lead ADA into a 15% fall.
- The digital asset is contained between two significant moving averages.
Cardano has been trading sideways for the past 48 hours above a key support level on the 4-hour chart. The digital asset must stay above $1.18 and crack $1.20 for a significant breakout, otherwise ADA will fall steeply.
Cardano price on the verge of a major move
Cardano is trading at $1.18 at the time of writing, right above a key support trend line that coincides with the 100 SMA at $1.16.
ADA/USD 4-hour chart
A breakdown below these two key support levels will drive the Cardano price toward the psychological level of $1, as there is almost no other support below.
ADA/USD 4-hour chart
On the other hand, if the bulls can hold the key support level and reclaim the 50 SMA support, the Cardano price can swiftly move toward $1.34. Above this point, there is virtually no resistance until the all-time high of $1.5.
Author
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.
