- Cardano price sell-off reverses as Tom DeMark Sequential indicator flashed a buy signal.
- A six-hour candlestick above the supply barrier at $1 could see ADA rise 20%.
- Transactional data suggest that ADA's upswing might be tough due to underwater buyers at $1.1.
Cardano price has been on a stellar rise toppling every all-time high in its path. However, the recent market sell-off has delayed its ascent at best. Despite a 30% drop, ADA bulls seem unwavering and are already pushing the price higher.
Cardano price aims for a higher high
Cardano price shows the presence of resilient buyers around the $0.85 level. On February 23, the Tom DeMark (TD) Sequential indicator flashed a buy signal in the form of a green nine candle. This setup forecasts a one to four candlestick upswing.
At the time of writing, ADA was already on this uptrend with the third candlestick trading around the supply barrier at $1, which coincides with the 78.6% Fibonacci retracement level.
Therefore, a six-hour candlestick close above this level would confirm the bullish momentum and provide the so-called “Ethereum killer” a chance to retest its all-time high at $1.2.
ADA/USDT 6-hour chart
Adding credence to this bullish outlook is IntotheBlock’s In/Out of the Money Around Price (IOMAP) model, which shows little to no resistance ahead. The only supply barrier that could deter ADA’s upswing is at $1.1, where nearly 30,800 addresses hold about 628 million ADA.
Therefore, the smart contracts platform token needs to overcome this supply barrier to retest $1.2 and perhaps extend its bull rally to 127.2% Fibonacci retracement level at $1.45.
Cardano IOMAP chart
A bearish scenario would kick-in if ADA gets rejected around the resistance barrier at $1.1. This outcome could push ADA down to support at $0.98, where 38,500 addresses hold nearly 2.5 billion ADA.
An unforeseen spike in buying pressure here leading to a breakdown of this support level could be fatal for Cardano. In such a case, ADA would drop 11% to the next immediate demand barrier at $0.87.
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
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.