Support from symmetrical triangle breakout might boost Cardano
Cardano is retesting $0.364, which might sustain upward momentum.
ADA's long-to-short ratio is over 1, indicating bullishness.
A daily candlestick closing below $0.342 would disprove bullishness.
Cardano (ADA) rises on Tuesday after falling over 6% the day before. Cardano's price might rise if ADA maintains a critical support level. As traders bet on Cardano's price rising, on-chain evidence confirms the bullish premise.
Cardono might rally if major support level holds.
On September 24, Cardano price rose more than 10% after breaking above a symmetrical triangle, a technical pattern produced by linking many highs and lows with two converging trendlines (from July to mid-September). Since Saturday, ADA's price has retraced and is nearing $0.364, the breakout level of the symmetrical triangle and the 50-day Exponential Moving Average (EMA), a major reversal mark. Tuesday's price is $0.380, slightly higher.
If $0.364 holds, ADA might rise 22% to $0.444, its daily barrier.
The daily chart's Relative Strength Index (RSI) has decreased but is now up at 56, suggesting a slowing in bullish momentum. Cardano must rebound when the RSI rises over 60 to maintain positive momentum.
If bulls are aggressive, the crypto market outlook is bullish, and Cardano closes above $0.444, ADA could rally 32% to reach the technical target of the symmetrical triangle at $0.590.
In/Out of the Money Around Price (IOMAP) from IntoTheBlock encourages bullishness. Nearly 133,350 addresses held 1.25 billion ADA tokens at $0.376 each. These addresses acquired Cardano coins at $0.370–0.382, a critical support zone.
Technical analysis suggests that the $0.364 level is a major reversal level since it matches IOMAP results.
Coinglass's Cardano long-to-short ratio suggests a bullish turn. Ratio 1.10 is the highest in over a month. The ratio over one indicates market bullishness since more traders expect the asset's price to increase.
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