- Cardano seems to have begun another technical breakout toward $1.56.
- The IOMAP chart reveals ADA has a relatively smooth path, adding credence to the uptrend.
- The MACD cross also reinforces the bullish narrative.
- A daily close under the 100 SMA might result in a breakdown back to $1.
Cardano has recently come out of a technical pattern resistance, and bulls are fighting to sustain the breakout. Over the last couple of weeks, ADA has comparatively been in consolidation. The breakout above the symmetrical triangle pattern points ADA toward a new record high at $1.56.
Cardano’s uptrend supported by improving on-chain levels
The IOMAP by IntoTheBlock reveals that ADA is moving toward a relatively smooth path. The absence of robust resistance zones could validate the breakout to a new all-time high. However, the model brings our attention to the region running from $1.15 and $1.18. Here, 38,250 addresses had previously bought roughly 2.1 billion ADA. Trading above this zone could see ADA continue with the uptrend.
Cardano is also sitting on top of an area with immense support. The area between $1.11 and $1.15 is the most robust buyer congestion zone. It is highlighted by the nearly 147,000 addresses that had previously purchased approximately 5.1 billion ADA.
Cardano IOMAP chart
The 4-hour chart brings a symmetrical triangle pattern to light, whose breakout targets a 34% upswing to $1.56. The pattern formed amid the consolidation witnessed in the past two weeks. Despite trading above the upper trendline, Cardano is struggling with sustaining the uptrend. However, closing the day above the Simple Moving Average will add credence to the bullish outlook.
Similarly, the Moving Average Convergence Divergence (MACD) has a bullish impulse. If the MACD line (blue) crosses above the signal line, the upswing to $1.56 will gradually be validated.
ADA/USD 4-hour chart
Looking at the other side of the fence
If Cardano closes the day under the 50 SMA and the 100 SMA, we can expect overhead pressure to rise. Moreover, return into the symmetrical triangle could be a bearish signal, likely to culminate in massive losses under the lower trendline. Besides, ADA is not out of the woods owing to the resistance at the 50 SMA.
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
IRS says crypto staking should be taxed in response to lawsuit
The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode
Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses
Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery
The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin 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 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.