- Cardano has broken out of a falling wedge pattern, eyeing gains to $1.35.
- The RSI validates ADA’s uptrend after bouncing off the oversold region.
- Recovery is likely to be a painstaking exercise, according to the resistance seen in the IOMAP.
Cardano has flipped bullish after a persistent downtrend over the last week. Support was embraced slightly above $1, whereby bulls took control of the trend. At the time of writing, ADA is trading at $1.12 following a breakout above a key technical pattern.
Cardano lifts toward $1.35
Cardano’s downtrend led to the formation of a falling wedge pattern. This is a continuation pattern that forms after significant upward price action. The freefall from the resistance leads to a consolidation period, as bulls prepare to take control. A breakout is usually anticipated when the price slices through the upper trendline.
Falling wedges have precise targets measured from the highest to lowest points of the pattern. Cardano gains are expected to spike to $1.35, presenting a 21% liftoff from the breakout point.
ADA/USD 4-hour chart
The Relative Strength Index (RSI) reinforced the uptrend after recovering from the oversold region. Cardano’s momentum to $1.35 is bound to continue if the RSI closes the gap toward the overbought area.
Looking at the other side of the picture
The In/Out of the Money Around Price (IOMAP) on-chain model by IntoTheBlock suggests that Cardano will settle for consolidation before breaking out further. This is due to an immense resistance highlighted between $1.12 and $1.16. Here, around 144,000 addresses previously bought approximately 3.9 billion ADA.
-637523372659875709.png)
Cardano IOMAP chart
The model brings to light a relatively strong support level, running from $1.09 to $1.12. Here, roughly 97,500 addresses previously bundled up nearly 3 billion ADA. If this support remains intact, Cardano will settle for a sideways trading action before completing the upswing to $1.35.
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
SEC Chair Gensler hints at resignation amid lawsuit from 18 states accusing the regulator of unlawful overreach
In a filing on Thursday, 18 states, along with the DeFi Education Fund, issued a lawsuit against the Securities and Exchange Commission, alleging that the regulator's crackdown on the crypto industry has been unlawful and unconstitutional.
Bitcoin Price Forecast: BTC eyes $100K, what are the key factors to watch out for?
Bitcoin trades below $90K in the Asian session on Friday as investors realized nearly $8 billion in profits in the past two days. Despite the profit-taking, Bitwise CIO Matt Hougan suggested that BTC could be ready for the $100K level, fueled by increased stablecoin supply and potential government investment.
Ethereum Price Forecast: ETH could rally to $4,522 despite mixed on-chain flows among investors
Ethereum is down over 1% on Thursday following record net inflows across ETH exchange-traded funds in the past six days. Despite the bullish market outlook, $300 million worth of unstaked ETH could hit the market and cause downward pressure on prices.
Crypto Today: Bhutan sells $33M BTC, McDonald’s launches NFTs, PEPE, SUI emerge top gainers
The aggregate cryptocurrency market capitalization shrank by 1.45% on November 14, reflecting a $42.6 billion dip. In the last 24 hours, 170,878 traders were liquidated to the tune of $485.13 million, per Coinglass data.
Bitcoin: Further upside likely after hitting new all-time high
Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.
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.