Briefly –
- Cardano (ADA) slides through the crucial resistance at $1.327 to validate a bullish move.
- According to transactional data, ADA would meet a massive resistance level at $1.52.
- Cardano’s correlation with Bitcoin is essential to help this uptick.
Cardano has rallied in the past days, attempting to recover its losses from the recent crypto market crash. Although a slight retracement might accompany the increases, the increasing trend seems intact for now.
ADA Price Indicate a Bullish Move
Cardano has its price rallying by around 16% since yesterday. The move flipped the vital resistance zone at $1.329 to a demand boundary. With this progress, buyers now prepare for the coming uptrend. However, market players need to expect a slight resistance near the support zone at $1.327 before a higher uptrend.
Meanwhile, ADA has to retest the 50% Fib retracement zone at $1.481 and the supply resistance at $1.451.
However, considering the total BTC and ADA price structure, the “Ethereum Killer” will likely move to the supply territory at $1.525, the lower border. That translates to about 15% from its support zone at $1.327.
Most investors are recycling their crypto investments from alternative coins to Bitcoin because of the recent market crash. You can notice this development from the BTC dominance chart. Hence, the current events in the crypto market have seen most altcoins correlating to Bitcoin.
As a result, the Cardano to Bitcoin correlation has amplified to 0.62 from 0.29 since last week. With this 113% surge, investors can conclude that BTC price influences Cardano price changes.
Since the Bitcoin market indicates a bullish outlook, market players can predict the same for ADA.
The IOMAP (Into the Blocks Out/In of Money around Price) supports this uptrend by indicating massive investor clusters below the prevailing price level.
Keep in mind that the 215,000 crypto addresses that bought 3.18 billion Cardano are ‘Out of the Money”. The addresses purchased the crypto coins at an average cost of $1.53.
At the moment, the ADA price has a higher probability of hitting its target, 15% increase.
If you want to invest with ADA for now, beware of the unpredictability surrounding the crypto market.