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.
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.
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.
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.
