- Cardano’s price retreats but remains above the hugely important 2018 high of $ 1.39.
- On May 25, ADA released an inverted head-and-shoulders pattern on the four-hour chart.
- IntoTheBlock IOMAP data shows a resistance band at the 61.8 Fibonacci retracement.
Cardano’s price has mingled with 50 four-hour simple moving averages and 200 four-hour moving averages over the past day, but it remains on track to close May with a double-digit lead and beyond. above the 2018 peak for the first time in four tries. . ADA faces broader market volatility, but it remains well positioned to be one of the leading digital assets going forward.
Cardano price stuck in minor turmoil
In the last CoinShares Digital Asset Fund Flows Weekly Report, digital assets recorded institutional net outflows for the second week in a row, totaling $ 97 million and marking a record net outflow. To give a perspective, it only represents 0.2% of total assets under management (AUM) and pales in comparison to total inflows of $ 5.5 billion for the year.
The report showed altcoin entries totaling $ 27 million, with Cardano recording the largest institutional entries at $ 10 million. This was the second week in a row of ADA inflows, bringing YTD inflows to $ 24 million for Cardano institutional investment products. Coinbase suggested that the bullish flows could “represent investors actively choosing evidence of setting coins based on environmental considerations.
On May 25, Cardano’s price emerged from a head-and-shoulders reverse formation on the four-hour chart, but failed to elicit emotion and investor engagement, resulting in the ongoing decline.
The pullback did not reduce the formation’s right shoulder Cardano price low to $ 1.42, implying that the breakout remains active at the time of writing. Additionally, if ADA continues to decline, the 2018 high will be tremendous support and cause a strong rebound, despite any residual selling pressure in the market.
The resumption of the Cardano price breakout would first find resistance at the 61.8% Fibonacci retracement of the May crash at $ 1.69, followed by a group of shadows going back to May 7, around 1 , $ 79 to $ 1.89. Further resistance appears at the junction of the 78.6% retracement at $ 1.99 with the psychologically important $ 2.00.
ADA / USD daily chart
If Cardano’s price is trading below the shoulder low at $ 1.42, it could push ADA to test or slightly exceed the 2018 high of $ 1.39. A monthly close around $ 1.35 would leave the token green with a massive long-legged doji pattern, signifying a balance between buyers and sellers and an increased level of indecision.
Interestingly, the latest IntoTheBlock In / Out of the Money Around Price (IOMAP) data shows a large (out-of-the-money) resistance group, formed by 112.62,000 addresses holding 2.68 billion ADA at an average price. of $ 1.70.
The average price falls right on the 61.8% retracement of May’s correction, suggesting that a renewal of the rally could end before it begins.
Conversely, support clusters (in the money) are minor up to the price range of $ 1.31 to $ 1.36 where 94.54,000 addresses hold 1.40 billion ADA at an average price. $ 1.34, indicating that a slight increase in selling pressure could close the Cardano price below the 2018 High for the fourth consecutive month.
ADA IOMAP data
Environmental considerations have sparked the interest of crypto investors due to the noticeable impact of mining on the earth. Elon Musk was instrumental in creating the message when he decided that Tesla would no longer accept BTC as a payment method due to the huge consumption of energy, mostly derived from fossil fuels. For Cardano, an ecosystem designed to be eco-friendly, awareness is a bullish inflection point for their growth and will reinforce the impression of a period of broader market weakness.