Cardano price consolidates, but ADA gears up to challenge market weakness
- Cardano’s price retreats but remains above the critical high of $ 1.39 in 2018.
- On May 25, ADA released an inverted head-and-shoulders pattern on the four-hour chart.
- IntoTheBlock IOMAP data shows a group of resistances at the 61.8 Fibonacci retracement.
Cardano’s price has been mixed up with 50 four-hour and 200 four-hour simple moving averages over the past day, but remains on track to close May with a double-digit lead and above the high. of 2018 for the first time in four trials. . 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 latest CoinShares digital asset fund flow 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 is paltry compared to the cumulative total inflows of $ 5.5 billion.
The report showed altcoin entries totaling $ 27 million, with Cardano recording the largest institutional entries at $ 10 million. This was the second consecutive week of ADA entries, bringing cumulative entries to $ 24 million for Cardano’s institutional investment products. Coinbase suggested that the bullish inflows could “represent investors actively choosing proof of stake based on environmental considerations.”
On May 25, the Cardano price emerged from an inverted head-and-shoulders formation on the four-hour chart, but failed to elicit emotion and investor engagement, leading to the pullback In progress.
The pullback did not undermine the low Cardano price of the formation’s right shoulder at $ 1.42, implying that the breakout remains active at the time of writing. Additionally, if ADA sells even lower, 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. Additional resistance emerges 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 undercut the 2018 high at $ 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 112.62k addresses holding 2.68 billion ADA at an average price of 1, $ 70.
The average price falls right on the 61.8% retracement of the May correction, suggesting that a renewal of the rally could end before it begins.
Conversely, support (in-the-money) clusters are minor up to the price range of $ 1.31 to $ 1.36 where 94.54,000 addresses hold ADA 1.40 billion at an average price of $ 1.34, indicating that a slight surge in selling pressure could close Cardano’s price below the 2018 High for the fourth month in a row.
ADA IOMAP data
Environmental considerations have captured 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.