Cardano Faces a Hurdle Before New All-Time Highs

Cardano Faces a Hurdle Before New All-Time Highs

September 1, 2021

Key Takeaways

  • Cardano has endured a week-long consolidation period. 
  • The $2.98 resistance level has managed to keep ADA from resuming its uptrend.
  • Transaction history shows stable support, favoring the bulls. 

Cardano is up nearly 3% since the beginning of the daily trading session as a new wave of volatility has struck the cryptocurrency market. Regardless of the recent gains, one technical indicator shows that ADA has a barrier to overcome before it can make new highs. 

Cardano Must Overcome Resistance

Cardano appears to have entered a consolidation period after surging to a new all-time high of $2.98 on Aug. 23. Since then, it’s been making a series of higher lows, while the $2.98 resistance level has prevented it from advancing further.

Such market behavior seemingly formed an ascending triangle on ADA’s four-hour chart. A horizontal trendline can be drawn along with the swing highs and a rising trendline along with the swing lows.



An increase in buying pressure around the current price levels could have the strength to push Cardano beyond the overhead resistance at $2.98. In this eventuality, ADA could advance by nearly 16.3% to make a new all-time high of $3.43. 

This target is found by measuring the distance between the two highest points of the triangle and adding it to the breakout point. 

Transaction history shows that as long as the demand barrier that extends from $2.74 to $2.82 holds, the odds will favor the bulls. IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model shows no significant supply barrier ahead of Cardano that will prevent it from achieving its upside potential. 

Still, the third-largest crypto by market cap needs to continue trading above the $2.74 to $2.82 range to prevent 91,500 addresses from selling the 2.4 billion ADA they acquired around this price level. 

Breaking below this crucial demand barrier may encourage investors to exit their positions to avoid seeing their investments go “Out of the Money.” A sell-off could instead lead to a 16.3% correction that pushes Cardano towards $2.40. 


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.

Source: Read Full Article