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Cardano Poised For Volatility As Bulls Grapple For Control

By Crypto Briefing (Ali Martinez )CryptocurrencyMar 11, 2021 12:19AM ET
www.investing.com/analysis/cardano-poised-for-volatility-as-bulls-grapple-for-control-200566497
Cardano Poised For Volatility As Bulls Grapple For Control
By Crypto Briefing (Ali Martinez )   |  Mar 11, 2021 12:19AM ET
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Cardano is about to undergo a highly volatile phase as investors slowly re-enter the market.

Key Takeaways

  • Cardano has reached an inflection point as volatility prepares to strike back.
  • As long as the $1.10 support holds, the odds remain high for an upswing to nearly $2.00.
  • If ADA fails to hold above this price hurdle, then a correction to $0.88 may materialize.

Cardano has endured a five-day stagnation period without providing a clear sign for where its price is heading next. Now that ADA sits at a crucial support level, a spike in demand is all that it needs to march towards new all-time highs.

Cardano Primed for Higher Highs

Cardano’s price action has been contained within an ascending parallel channel over the past month.

Each time ADA has risen to this technical formation’s upper boundary since early February, it gets rejected and retraces to the lower edge. From this point, it tends to rebound, consistent with the characteristics of a channel.

Following the recent retest of the channel’s lower trendline, Cardano may be poised for a bullish impulse towards the middle or upper trendline as it has done in the past few weeks.

These interest areas sit at $1.50 and $1.90, respectively.

ADA/USD Daily Chart
ADA/USD Daily Chart

As long as the underlying support at $1.10 continues to hold, the odds for a rebound to new all-time highs will remain intact.

Strong Support With No Resistance

IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model reveals that it will take a significant number of sell orders for Cardano to slice through the $1.10 support. Based on this on-chain metric, nearly 140,000 addresses had previously purchased roughly 5 billion ADA around this price level.

Such a critical demand barrier will likely absorb any downward pressure. Holders within this range might do anything to prevent seeing their investments go “Out of the Money.” They may even buy more tokens, subsequently countering the selling pressure.

In/Out of the Money Around Price
In/Out of the Money Around Price

Given the significance of the $1.10 support level, only a daily candlestick close below this level would invalidate the bullish outlook. Slicing through this price hurdle will see Cardano dive towards the next important interest area at $0.88.

Here, the IOMAP cohorts show that 136,000 addresses hold 2.80 billion ADA.

Original Post

Cardano Poised For Volatility As Bulls Grapple For Control
 

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Cardano Poised For Volatility As Bulls Grapple For Control

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Comments (3)
Damien Krumins
Damien Krumins Apr 15, 2021 2:09PM ET
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ADA will succeed!
Chidi Daniel
Chidi Daniel Mar 27, 2021 1:53PM ET
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I bought over 10,000 ada coins at $1.11 I strongly believe that it wouldn't go below the $1.10 resistance and it is poised to reach $2 eventually
Evans Higuain
Evans Higuain Mar 11, 2021 6:04AM ET
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hello am now here
 
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