Cardano Nears Breakout Point, 13% Gain Possible

Cardano, a prominent cryptocurrency, is currently at a critical juncture with key levels to watch that could determine its future trajectory. The asset has been consolidating within a tight range between $0.699 and $0.75 over the past few days. However, with a recent price surge, Cardano reached the upper boundary of this range and was on the verge of a breakout.

According to analysis, if Cardano breaches the upper boundary and closes a daily or four-hour candle above the $0.76 mark, there is a strong possibility it could soar by 13% to reach $0.85 in the coming days. The asset’s four-hour chart also revealed that the 200 Exponential Moving Average (EMA) was near the $0.75 mark, providing additional resistance. Meanwhile, Cardano’s Relative Strength Index (RSI) was near 60, indicating that the asset has enough room to rise and overcome these minor hurdles hindering its upward momentum.

Intraday traders are bullish on the asset, strongly betting on the long side. Traders were over-leveraged at $0.712 on the lower side and $0.76 on the upper side, with $18.25 million worth of long positions and $8.50 million worth of short positions built, respectively. These on-chain metrics further revealed that bulls were currently dominating, and if Cardano hits the $0.76 level, $8.50 million worth of short positions will be liquidated.

In addition to trader participation, whales and long-term holders have shown notable accumulation during the ongoing consolidation. Data from spot inflow/outflow revealed that since the 13th of March, exchanges have witnessed a continuous outflow of ADA tokens, suggesting potential accumulation and indicating an ideal buying opportunity.

For investors and traders, understanding these key levels is crucial for developing a comprehensive trading strategy. By identifying support and resistance levels, market participants can make more informed decisions about when to enter or exit positions. In the case of Cardano, the support levels to watch are $0.1850 – $0.1880, while the breakout zone is at $0.1950+. If Cardano manages to break through this zone, it could trigger a strong rally, with targets set at $0.2020 – $0.2100.

However, it is essential to approach these predictions with caution. Market conditions can change rapidly, and external factors such as regulatory developments or technological advancements can significantly impact cryptocurrency prices. Therefore, while these key levels provide valuable guidance, they should not be the sole basis for investment decisions.

In conclusion, Cardano's potential to soar to new heights is contingent on its ability to breach key resistance levels. By closely monitoring these levels and staying informed about market developments, investors can position themselves to capitalize on Cardano's growth potential while managing the associated risks.