- Cardano’s price breached the buy zone at $0.875 – $0.955, indicating downside continuation towards the $0.776 range low.
- However, a rebound from the barrier at $0.85 could welcome swift upsurges to $1.
- Still, the Ethereum Killer producing a daily candle closing beneath $0.776 will invalidate ADA’s bullish thesis.
Cardano (ADA) seems to see increasing woes since the alternative token touched ATHs in September 2021. ADA bears also pushed the alt under the buy zone, showing bears dominating the marketplace. Nevertheless, on-chain metrics show a possible uptrend in the making.
ADA Continues to Bleed
Cardano made a 180 as the altcoin erases almost all gains seen since 14 March. The downward move adds to the token’s woes that dominated since the $3.10 ATH, registered on 2 September. The long-lasting drop emerges due to the crypto market structure and Bitcoin’s weakness. The latest ADA drop under the buy zone at $0.875 – $0.955 backs the bearish outlook.
While the outlook remains bearish, Cardano has one recovery chance and tries to overturn the stiff hurdle at $0.973 into a foothold. Surprisingly, this zone matches the 50-day SMA, making the barrier formidable to overcome.
Investors may forget bullish reactions until ADA overpowers this crucial barrier. Nevertheless, Cardano bulls flipping the hurdle of $0.973 into the footing, there are 100-day Simple Moving Average at $1.01 and $1.09 obstacles to overpower.
So, Cardano’s price will likely print a local high near the $1 psychological zone or the barrier at $1.09. any move past these areas is unlikely for ADA price. IntoTheBlock’s GIOM supports the token’s rise past $1.
The metric suggests that about 217,000 addresses that bought approximately 24 billion Cardano tokens in the $0.92 – $0.97 range stay out of money. The index shows technical are somehow more optimistic with the forecasted moves to $1.01 or higher to $1.09.
Meanwhile, failure to rise from the $0.875 – $0.955 buy territory could mean continued downtrends towards the $0.776 range low. Though such a move would mean bearishness, it’s a lucrative accumulation spot for long-term investors.
Buyers’ failure to step up near $0.766 plus a daily candle closing beneath the area will annul the ‘pause before upsurge’ case through a lower low.
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