- Cardano price seems to be finding a foothold above the $0.87 support level before entering a new uptrend.
- A confluence of bullish signals notes that an upswing is inevitable if ADA closes above the $0.92 resistance level.
- While a decisive 4-hour candlestick close above this hurdle could trigger a 60% upswing, failure to do so might drag Cardano down by 40% or more.
Cardano price poised to breakout
Cardano price found support on the 50 four-hour moving average after taking a nosedive to the $0.68 support level on February 15. The so-called “Ethereum killer” continues trading above this lagging indicator, bouncing off it multiple times.
Such behavior demonstrates the strength of the 50 four-hour moving average to keep falling prices at bay, which is a very positive sign.
The Tom DeMark (TD) Sequential indicator adds credence to the optimistic outlook. This technical index flashed a buy signal on ADA’s 4-hour chart, forecasting further upward momentum.
Likewise, the Parabolic Stop and Reverse (SAR) moved underneath Cardano price, anticipating the beginning of a new uptrend. The flip-over coincides with the TD setup’s buy signal and strengthens the bullish outlook presented by the SuperTrend indicator.
Based on IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model, Cardano price must slice through $0.92 to advance further. Here, nearly 28,000 addresses previously purchased about 1.32 billion ADA.
These investors are “Out of the Money” and may be inclined to sell their holdings at break-even, slowing down the uptrend seen recently. But if Cardano price manages to break through this hurdle, it will likely march towards $1.20.
Cardano IOMAP chart