- Cardano price recovery becomes a daunting task as support at $1.16 becomes very crucial.
- RSI and MACD show sustained sideways price action in the near term.
- IOMAP model reveals ADA is currently sitting on strong support
Cardano price action over the weekend has been uneventful with the upside capped at $1.22 while a crucial support is revisited at $1.16. The green token is generally in a downtrend that begun on July 7 reversing recovery efforts that were seen since June 23. What do technicals tell us?
Cardano Price Action Shows Market Indecision
At the moment, the technical outlook indicates that neither the bears nor the bulls are in control of ADA. A look at the 12-hour chart reveals that the Cardano price has been consolidating over the weekend and that a breakout could occur in either direction.
Currently, ADA hovers around $1.16 which also acts as the immediate support. Note that Cardano price must break past $1.22 to validate a bullish breakout towards $1.25.
On the downside, if Cardano price falls below the $1.16 support area, bears will be bolstered to push ADA price towards $1.1.
However, the Moving Average Convergence Divergence (MACD) indicator shows that a sideways price action will be witnessed in the near term. May be a buy or sell crypto signal in the next trading sessions will determine which direction the Cardano price will take.
Moreover, the Relative Strength Index (RSI) accentuate the current indecision in the market as it flattens out near the oversold region. Note the, as the RSI move close to the oversold region, a reverse trend is expected in the near turn as bulls begin to take control of the market.
Cardano Price (ADA/USD) 12-hour Chart
Cardano Bulls Must Defend the $1.16 Support Level
The Into/Out of the Money Around Price (IOMAP) model by IntoTheBlock reveals that ADA is currently sitting on relatively strong support between $1.13 and $1.16. At this range around 70,430 addresses previously bought approximately 1.42 billion ADA.
Therefore, bulls must defend the current support at $1.16 as it falls within this range to avoid any further ADA price drop. The support areas beyond $1.13 seem relatively weak.
On the other hand, the IOMAP model reveals that ADA price faces robust resistance upwards. This is particularly within the range between $1.23 and $1.27. At this range, around 126,610 addresses previously bought approximately 2.72 billion ADA.
This is a key resistance area for ADA bulls the $1.25 resistance zone currently defined by the 20-day Simple Moving Average (SMA) is within this zone.
More resistance upwards is found at the 50-day SMA ($1.30) and 100-day SMA ($1.41) meaning that recovery towards May highs beyond $2.4 is not a walk in the park for bulls.
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Nancy Lubale
