Key Takeaways
Cardano remains stagnant despite breaking out of a descending triangle.
The $1.33 resistance level has proved to be significant for ADA’s trend.
Only a daily candlestick close above this barrier could see prices rise to $1.91.
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Cardano has broken out of a consolidation pattern, but it’s lacking the volume it needs for a trend reversal.
Cardano Faces Stiff Resistance
Cardano has not had the strength to advance further after breaking out of a descending triangle on Jul. 24. The $1.33 resistance zone has prevented ADA from achieving its upside potential.
Although the technical formation forecasts a 54.55% upswing toward $1.91, trading volume remains almost flat.
Amazon’s negative stance on supporting cryptocurrency payments may have contributed to Cardano’s stagnant price action. Now, time is running out for the fifth-largest cryptocurrency by market capitalization to make its final move.
Buy orders need to increase at the current levels for ADA to target higher highs and avoid a steep correction.
Source: TradingView
IntoTheBlock’s In/Out of The Money Around Price (IOMAP) model shows that 250,530 addresses have previously purchased over 4.34 billion ADA between $1.30 and $1.35. Holders within this price range could be trying to break even on their underwater positions, which would hold the asset back.
A spike in buying pressure that allows Cardano to move past $1.33 might be all that is needed for prices to rise toward the $1.91 target presented by the descending triangle as the IOMAP model shows no other significant supply wall ahead.
Source: IntoTheBlock
On the other hand, transaction history reveals that the most critical support level underneath Cardano sits between $1.06 and $1.21. Here, 243,700 addresses bought 3.35 billion ADA.
This demand barrier must hold in the event of a sell-off since the next support level sits at $0.35, according to the IOMAP model.
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