Cardano price could revisit $1 as ADA threats multiply – FXStreet

Akash Girimath Akash Girimath

Cardano price has breached its consolidation range but is struggling to head higher. The presence of a resistance confluence makes this run-up an arduous task for bulls.
Cardano price traded between the $1.12 and $1 barrier for roughly two weeks, signaling a consolidation. On February 5, ADA breached through this sideways movement and produced a swing high above $1.12, flipping into a support floor.
Cardano price faces two critical hurdles as it trades above $1.12 – the weekly resistance barrier at $1.20 and the 50-day Simple Moving Average (SMA) at $1.24. Hence, the chances of an upswing are considerably less. 
Therefore, investors can expect Cardano price to face rejection at either of the two barriers and retrace lower. A failure to breach the 50-day SMA at $1.24 could lead to a 15% downswing to the daily support level at $1. This barrier served as a support platform for the run-up in mid-2021 that pushed ADA to $3. Hence, this stable support floor is where the downside could be limited. 
ADA/USDT 4-hour chart
ADA/USDT 4-hour chart 
Supporting this downward movement for Cardano price is IntoTheBlock’s Global In/Out of the Money (GIOM) model. This on-chain index shows that the immediate support level for ADA is non-existent and that a stable one is present at $1.03, further adding credence to the short-term bearish thesis. Therefore, investors can expect ADA to find a firm footing around this barrier where roughly 448,830 addresses that purchased 7.78 billion ADA are “In the Money.” 
Another reason why a bullish thesis Cardano price is unlikely is due to the decline in the number of large transactions from 5,100 to 4,900. This 3.9% drop, which serves as a proxy of their 
investment thesis, indicates that they are not interested in ADA at the current levels.
ADA large transactions
ADA large transactions
All in all, Cardano price seems ready for a quick leg down to $1, a crucial psychological level. This bearish outlook can be side-stepped if ADA bulls can produce a four-hour candlestick close above $1.24. 
Doing so will allow Cardano price to have a free reign up to $1.45 or a 17% upswing. The upside seems to be limited at $1.45, which is a confluence of the weekly resistance barrier and the 100-day SMA.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Ethereum price is giving up on its bid for a pre-Merge rally amid concerns over rising inflation levels. The leading smart contracts token exchanges hands slightly above $1,600, with losses expected to close below the same level on Tuesday. On the bright side, this pullback might give investors another chance to catch an anticipated Merge-triggered bullish breakout above $2,000.
Polkadot (DOT) price action has seen bulls only enjoying life very briefly above the monthly pivot near $8.00. The biggest issue here seems to be the combination of the 55-day Simple Moving Average (SMA) and that same monthly pivot.
Binance Coin price is following up with its push for a sustainable rebound from support formed at $262. Despite the overarching losses experienced over the last three weeks.
Solana (SOL) price sees bulls firmly breaking above the 55-day Simple Moving Average (SMA) after they failed to close above it on Monday. Though a telling sign, when viewed within the broader picture.
Bitcoin price has not only swept key swing lows, as noted in last week’s articles, but it has also reached its first recovery level target. While the recovery rally was as quick as it was a surprise, investors can hope for a minor retracement to get on the next leg-up.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.