Lorenzo Stroe
Independent Analyst
- Cardano price is close to a critical support trendline which has been holding since February.
- A key indicator is on the verge of presenting a buy signal.
- ADA faces a significant barrier above $1.2.
Cardano had a relatively small sell-off in the past few days compared to the market but must remain above a critical support level to avoid a more significant drop.
Cardano price must stay above key level to avoid collapsing
On the 4-hour chart, there is a critical support trendline formed at about $1.1, which coincides with the 50-SMA. Cardano price has bounced several times in the past month and a half from both indicators.
A breakdown below the key support level of $1.1 would send Cardano towards $0.9 at the 200-SMA. The In/Out of the Money Around Price (IOMAP) chart shows practically the same outlook with the most significant support area between $1.08 and $1.12.
However, since the $1.1 support trendline is robust, a rebound from this point will quickly push Cardano price towards the next significant resistance level located between $1.26 and $1.29 according to the IOMAP model.
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