Cardano News Cardano is attempting to recover after incurring significant losses over the past week.
- Cardano has consolidated within a narrow price pocket after a brutal 45% correction.
- A decisive break outside the $0.58 to $0.49 range can determine where ADA will go next.
- A particular technical indicator suggests that a break to the upside is likely to occur.
Cardano is showing early signs that it wants to recover despite the precarious market conditions. Still, traders would have to wait for a decisive close above resistance because the technicals present ambiguity.
Cardano News Cardano Consolidation
Cardano remains stagnant while momentum builds up for a significant price movement.
Cardano endured a 45% correction following Terra’s death spiral. It saw its price drop from a high of $0.70 to a low of $0.38 on May 12. Its ADA token has since been consolidating within a tight price range that is becoming narrower over time.
Such erratic price action appears to have led to the formation of a symmetrical triangle on Cardano’s four-hour chart. As ADA approaches the pattern’s apex, it builds momentum for a significant spike in volatility. A sustained close above the $0.58 resistance level or below the $0.49 support level could result in a 45% price swing in that direction.
Despite Cardano’s ambiguous outlook, the odds appear to favor the bulls. The Tom DeMark (TD) Sequential indicator presented a buy signal in the form of a red nine candlestick within the same time frame. The bullish formation anticipates a one to four candlesticks upswing, which could help ADA overcome the $0.58 resistance level.
Breaching this critical supply barrier could encourage sidelined investors to reenter the market and push Cardano toward $0.82.
Still, it is imperative to wait for a sustained close above resistance or below support due to the current market conditions. The lack of trading volume and uncertainty among investors paint a negative picture for the cryptocurrency market.
Disclosure: At the time of writing, the author of this piece owned BTC and ETH.
For more key market trends, subscribe to our YouTube channel and get weekly updates from our lead bitcoin analyst Nathan Batchelor.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Cardano and Polygon at Risk of Freefall
The bloodbath in the cryptocurrency market may have no end in sight, and Cardano and Polygon are showing signs of weakness. Cardano and Polygon On the Edge Cardano’s ADA and…
New Cardano DEX Hopes to Overcome Chain’s Scaling Woes
AdaSwap, a new ecosystem builder on Cardano, announced Tuesday that it had raised $2.6 million to build “the best, decentralized exchange on Cardano.” AdaSwap Raises $2.6M to Build First Working…
Cardano Grows Block Size by 11% to Meet Scaling Challenges
Cardano’s core development team, Input Output, will increase the network block size by 11%. The team has also planned a memory boost for its smart contract platform, Plutus. Cardano Aims…