- The recovery in Cardano prices becomes a daunting task as the support at $ 1.16 becomes very crucial.
- The RSI and MACD show sustained side price action in the short term.
- IOMAP model reveals that ADA currently relies on strong support
Cardano’s price action over the weekend went off without a hitch with an increase capped at $ 1.22 while crucial support is revisited to $ 1.16. The green token is generally in a downtrend which started on July 7, reversing the recovery efforts seen since June 23. What do the techniques tell us?
Cardano Price Action shows market indecision
For now, the technical outlook indicates that neither bears nor bulls control ADA. A review of the 12-hour chart reveals that Cardano’s price has consolidated over the weekend and a breakout could occur either way.
Currently ADA is hovering around $ 1.16 which also serves as immediate support. Note that Cardano’s price must exceed $ 1.22 to validate a bullish breakout towards $ 1.25.
On the downside, if Cardano’s price falls below the $ 1.16 support area, bears will be strengthened to push the ADA price towards $ 1.1.
However, the Moving Average Convergence Divergence Indicator (MACD) shows that sideways price action will be observed in the near term. Perhaps a crypto buy or sell signal over the next few trading sessions will determine the direction the Cardano price will take.
Additionally, the Relative Strength Index (RSI) accentuates the current market indecision as it flattens near the oversold region. Note that as the RSI moves closer to the oversold region, a reverse trend is expected in a near turn as the bulls begin to take control of the market.
12 hour chart of Cardano price (ADA / USD)
Cardano Bulls must defend $ 1.16 support level
The Into / Out of the Money Around Price (IOMAP) model by InLeBloc reveals that ADA currently sits on relatively strong support between $ 1.13 and $ 1.16. Within this range, approximately 70,430 addresses have previously purchased approximately 1.42 billion ADA.
Therefore, the bulls need to defend the current support at $ 1.16 as it is in this range to avoid any further decline in ADA prices. Support areas above $ 1.13 look relatively weak.
On the other hand, the IOMAP model reveals that the price of ADA is facing robust resistance to the upside. It is particularly in the range between $ 1.23 and $ 1.27. Within this range, approximately 126,610 addresses have previously purchased approximately 2.72 billion ADA.
This is a key resistance zone for ADA bulls, the $ 1.25 resistance zone currently defined by the 20-day Simple Moving Average (SMA) is within this zone.
More upside resistance is found at the 50-day SMA ($ 1.30) and the 100-day SMA ($ 1.41), meaning the rally to May highs beyond 2.4 $ is not a walk in the park for the bulls.
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