- Cardano price is showing signs of reversal after a correction of 30%.
- The buy signal from the Tom DeMark Sequential indicator on the 4-hour and 12-hour charts suggests that the bull rally will continue.
- Transaction data shows strong resistance at $ 1.28 which could prevent ADA’s rally.
Cardano price showed signs of recovery as the bulls managed to keep ADA above a critical support barrier. Now a reversal of the dynamic could bring the so-called “Ethereum killer” back to USD 2.
Cardano price suggests a U-turn
Cardano price fell nearly 30% after hitting an all-time high of $ 1.48 on Feb.27. Although ADA cut below the 50-hour MA of 50, bulls have held the altcoin above the 100-four-hour MA, which shows their strength.
The lower Bollinger Band, which coincides with the 100-hour MA, provided additional support for falling prices. If this barrier persists, a volatile reversal is at play.
The buy signal of the TD Sequential indicator, which is shown in the form of a green nine-candlestick on both the 4-hour and the 12-hour chart, gives credibility to this bullish thesis. This setup predicts a one to four candlestick rebound, suggesting the Cardano price is heading for greener pastures.
ADA / USDT 4-hour and 12-hour charts
While the technical data suggests an bullish outlook, investors need to be careful about the resistance barrier at $ 1.26.
IntoTheBlock’s IOMAP (In / Out of the Money Around Price) model shows that around 32,800 addresses contain 1.83 billion ADA. These holders are currently “out of the money” based on this on-chain metric.
Hence, they might be inclined to sell their tokens to break even. Only a crucial 4 hour candlestick above $ 1.26 will kick Cardano’s price rally to $ 2.
Cardano IOMAP diagram
On the other hand, the IOMAP cohorts also show that a 4-hour candlestick that is under $ 1.07 puts 165,000 addresses underwater. With these investors holding 3.52 billion ADA, such a move could be fatal for the Cardano price.
Crossing this critical support barrier could trigger a 16% sell-off into the next interest rate area at $ 0.89.
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