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  • Cardano price extends recoil from recent support at $1.92, coming face to face with the stubborn hurdle at $2.2.
  • The MACD is about to flip massively bullish, triggering gains to the record high at $2.5.
  • IntoTheBlock’s IOMAP model reveals immense resistance ahead of ADA, likely to hinder the recovery.
Cardano is trading in the green toward the end of the Asian session on Thursday. This bullish outlook appeared after ADA embraced support around $1.92 following a correction from the recently traded three-month high roughly at $2.25.

Meanwhile, the newest smart contract token is exchanging at $2.08 after the uptrend faltered at $2.2. The seller congestion at this level has remained intact, challenging recovery attempts that are eyeing the all-time high near $2.5.

Cardano Price Is Bullish But Resistance Galore

The short-term technical picture appears to have flipped bullish as ADA lifted from $1.92. According to the four-hour chart, the Moving Average Convergence Divergence (MACD) indicator would present a buy signal in the nearest future if not for the barrier at $2.2.

The bulls must keep the price above $2, a move that could ensure market stability and increase the chances of the MACD turning bullish. In the meantime, holding above the mean line favors the bulls, but the 12-day EMA must cross above the 26-day EMA to validate the recovery and give bulls a boost to crack the barrier at $2.2.

ADA/USD Four-Hour Chart

ADA/USD price chart
ADA/USD price chart by Tradingview

Trading above this level may trigger more buy orders as speculation mounts for gains to $2.5. Investor interest is expected to shoot up, especially after Cardano’s Alonzo network upgrade.

Looking At The Other Side Of The Picture

IntoTheBlock’s IOMAP on-chain metric highlights a massive resistance that may sabotage the expected upswing at $2.17. Around 61,000 addresses previously bought 1.1 billion ADA in this area and may wish to break even as the price rises, dampening the bullish pressure.

Cardano IOMAP Chart

Cardano IOMAP chart
Cardano IOMAP chart by IntoTheBlock

On the downside, relatively strong support is provided for Cardano at $1.97. As long as ADA holds above this level, corrections will be mitigated, allowing bulls to forge another way to $2.5.

Source: coingape.com

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