ADA bulls target the range high after flipping this key resistance to support
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Cardano saw its market structure shift bullishly after recent gains
- Another move higher to $0.28 was likely, but a breakout past it might not occur during this move
Cardano [ADA] showed promising signs of bullishness. The uptick began on 25 September and rallied 12% in a week measured from bottom to top. ADA saw a retracement in recent hours but retained its bullish outlook.
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A price report from AMBCrypto dated 25 September highlighted a range formation and detailed the importance of the $0.239 support. Evidence from the volume indicators showed buying pressure was dwindling back then, but the bulls have been able to turn things around and defend the $0.24 level with vigor.
The mid-range level was flipped to support to illuminate the next move for Cardano
The aforementioned range extended from $0.238 to $0.28, and its mid-range level was at $0.259. At the time of writing, ADA was trading at $0.2596 and had flipped the mid-range resistance to support over the past two days.
Moreover, the former bearish order block (cyan) was also retested as a bullish breaker block after the rally. In addition, the bearish market structure on the one-day chart was broken after the move above the recent lower high at $0.258, posted on 19 September.
The Relative Strength Index (RSI) clambered back above neutral 50 and the On-Balance Volume (OBV) saw an uptick. Whether the demand will be enough to fuel a rally remains to be seen. Additionally, the price action evidence pointed toward a move to $0.28, and buyers could look for a lower timeframe bullish structure break to enter long positions targeting the range high.
The huge spike in dormant circulation was spotted- does it highlight weak holders?
The development activity has trended higher since August despite the price trend and is an encouraging sign for long-term holders. However, the dormant circulation metric didn’t the massive surge in dormant circulation represented 567.8 million ADA being transferred on 28 September that had previously been idle.
How much are 1, 10, or 100 ADA worth today?
This happened near the range lows and suggested long-term holders succumbed to panic and fear. Furthermore, the Market Value to Realized Value (MVRV) ratio remained negative and signaled the token was undervalued.