- Cardano has made a minor recovery from support at the 100 SMA, but the upside is limited under $0.28.
- On-chain metrics spell trouble as ADA bulls fight to reclaim the lost ground toward $0.34.
Cardano is in the middle of a recovery mission after bouncing off support at the 100 Simple Moving Average on the 4-hour chart. However, gains are likely to delay due to the overhead pressure, especially at the 50 SMA ($0.28).
Cardano bulls relentlessly fight to reclaim lost ground
A daily close above the 50 SMA is likely to see Cardano push the recovery mission higher. More resistance is anticipated at $0.3. If buyers can make it past these two key levels, investors currently sitting on the sidelines may join the market, and perhaps creating enough tailwind for gains beyond $0.34.
%20(27)-637460185716182737.png)
ADA/USD 4-hour chart
IntoTheBlock’s IOMPA model reveals intensifying resistance towards $0.34, where the most robust seller congestion zone lies between $0.3 and $0.31. Here, roughly 16,200 addresses previously bought nearly 1.2 billion ADA. Breaking through this zone will not be easy; therefore, bulls must brace for an uphill battle.
-637460185826655903.png)
Cardano IOMAP model
The model also reveals the lack of formidable support for Cardano, hence the possibility of a breakdown coming into the picture. For now, subtle support runs from $0.23 to $0.24. Here, about 10,500 addresses had previously bought approximately 488 million ADA.
On the contrary, the weekly chart presents a massive head-and-shoulders (H&S) pattern. In technical analysis, this chart pattern is exceptionally bullish. Hence, it suggests that Cardano may turn the trend around for a massive 900% upswing to new all-time highs around $2.18.
ADA/USD 4-hour chart
Simultaneously, if the smart contract token closes the day above the short term support at $0.26, stability could return to the market. A stable market will give buyers ample time to plan the next attack at the resistance presented by the 50 SMA and the seller congestion at $0.30.
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
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) 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 Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
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.